The UK economy contracted by 0.3% according to the ONS

25 January 2013

The UK economy shrank in the last three months of 2012, further fuelling fears that the economy could re-enter recession.The Office for National Statistics (ONS) said the economy contracted 0.3% in the October to December quarter.  This is the first estimate of how the economy performed in the fourth quarter, and is subject to two further revisions.Given the recent criticism of statistics of late many are now not believing the figures.  What is more these figures are frequently revised as mentioned above. They should just send out accurate figures in the first instance as it would save a lot of bother.   Unemployment has fallen, more people are in work and business confidence has held up reasonably well. What is more the insolvency statistics, despite the few recent retail collapses, are showing an improving picture.The economy had grown by 0.9% in the previous quarter, boosted by the London 2012 Olympic Games.For the whole year, growth was flat, the ONS said, adding that the "bumpy economy" was on a "sluggish trend". However, the general consensus is that the economy is flat with real wage rises running at low levels.Manufacturing fell by 1.5% in the quarter, the services sector was flat, but construction output rose by 0.3%.