UK in recession

UK recession confirmed
-Fears over the state of the economy have been confirmed after figures showed Britain is in recession.
-Britain in recession, data confirms
The economy contracted by 1.5 per cent in the final three months of 2008 - the worst performance in more than 28 years, according to the Office for National Statistics.

The estimated fall in quarter-on-quarter gross GDP comes after a 0.6 per cent decline in the previous three months - a "technical" recession, as defined by two successive quarters of negative output.

The annual rate of output in 2008 is also set to make for grim reading in what will be a far cry from the 3 per cent seen in 2007.

Figures already published this week confirm an increasingly gloomy economic picture.

In the latest manufacturing sector survey, data showed activity slumped to its worst since July 1991 over the past three months, with the outlook the bleakest in 28 years.

Official statistics revealed that unemployment increased by 131,000 to 1.92 million in the three months to November to the highest level in more than a decade

(source: www.uk.news.yahoo.com, 10:45 GMT)