GDP Down 0.3%

GDP fell by 0.3% in Q4 2011 according to the quarterly national accounts (QNA) bulletin from the ONS. In volume terms GDP increased by 0.7%.

Production output fell by 1.3%, services output by 0.1%. Household consumption increased by 0.4%. Compensation of employees increased by 0.9%. Agricultural output fell by 1.5% in Q4 2011 compared with a decrease of 0.5% in Q3. Services output decreased by 0.1% compared with an increase of 0.8% in Q3. Services output increased by 1.6% over 2011.

Analysed in term of expenditure, GDP decreased by 0.5% in Q4 2011. Household final consumption increased by 0.4% compared with a decrease of 0.3% in Q3. The largest increase in spending was in miscellaneous services driven by life assurance and other services. Recreation and culture increased during the quarter but rises were offset by falls in spending on housing with electricity, gas and other fuels reporting the largest fall. Over the year of 2011, household final consumption fell by 1.2%.

Income categories analysis shows GDP at current market prices rose by 0.6% compared with a 0.9% increase in Q3. While compensation of employees rose by 0.9% in Q4 over the year 2011 it increased by 2.1%. The gross operating surplus of corporations fell by 1.3% over the quarter and grew by 0.2% over 2011, private non-financial corporations rose by 2% over the quarter but financial corporations operating surplus fell by 15%.