Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

British economy officially in recession

Gross domestic product tumbles 1.5% in the fourth quarter, marking two straight quarters of negative growth.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

LONDON (CNN) -- The British economy is officially in a recession, according to GDP numbers released Friday.

The British gross domestic product declined by 1.5% in the fourth quarter of 2008, the British government announced. That followed a decline of 0.5% in the third quarter.

The traditional definition of a recession is two consecutive quarters of negative GDP growth.

There were already hints the British economy was heading toward a recession before the fourth-quarter results emerged, because second-quarter results for 2008 had showed no change in the GDP.

"The increased rate of decline in output was due to weaker services and production industries output," Britain's Office for National Statistics announced.

Manufacturing output fell by 4.6% in the fourth quarter and was the biggest contributor to the slowdown in production, the government said.

Large declines also occurred in construction; the services sector, especially hotels and restaurants; and transport. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
A White House press briefing as told by CNN's sketch artist The White House started banning cameras during some briefings, so CNN sent in sketch artist Bill Hennessy. More
The best gadgets for your next business trip Hotels often lack the resources business travelers need to work efficiently. But fear not: These six gadgets will turn any hotel room into a temporary office. More
Must-have gadgets for business travelers For many business travelers, commuting through airports and enduring flights is the worst part of any trip. Thankfully, these seven gadgets help make life on the road -- and in the air -- much easier. More
Sponsors