Bleak end to 2012 for the UK

While many focus on that slight upwards revision to UK GDP for last year as a whole, the components of the last quarter GDP slump by 0.3 per cent are troubling.

Government spending is up 0.6 per cent, while the coalition tells us that they are committed to austerity. As a smaller rise of 0.1 per cent was expected, the likelihood of Osborne meeting his deficit reduction targets seems slimmer still.

Consumer spending was up 0.2 per cent, a small good news story. However the worrying part of the release saw industry fall 1.9 per cent and services by 0.1 per cent. Growing government spending while other areas collapse imply that 2013 will not see the private sector-led recovery the UK needs.

The 0.3 per cent upwards revision to 2012 GDP is due to a 0.2 per cent point revision to the first quarter and a 0.1 per cent point revision to the third.