Things aren't as bad as we thought, it turns out – after official figures showed UK GDP rose 0.6 per cent in the fourth quarter of last year, rather than the 0.5 per cent originally thought.
The figures, published by the Office for National Statistics (ONS) this morning, showed growth in December 2015 compared with the same month in 2014 was 2.1 per cent, 0.4 percentage points higher than expected.
Meanwhile, the month-on-month figure was 0.3 per cent, up from the previous estimate of 0.2 per cent.
The news caused the pound to pare losses against the dollar, pushing it up 0.06 per cent to $1.4387, from a session low of $1.4334. It also regained some of its losses against the euro, rising to €1.2670, although it remained 0.11 per cent down.
"The latest GDP data shows the UK economy ended 2015 a little more strongly than previously thought," said ONS chief economist Joe Grice.
"But the figures show a fall in household incomes, with the saving ratio reaching a record low."