U.K. Economy Shrank Less in Q2 Than Previously Estimated

The United Kingdom's gross domestic product in the second quarter of 2012 shrank less than previously estimated, according to newly released data from the Office for National Statistics.

The data indicate that U.K. economy contracted by 0.5%, rather by 0.7% as previously estimated. This economic contraction marks a third consecutive quarter of declines in the country and matched the median forecast of economists in a Bloomberg survey. From a year earlier, the economy shrank 0.5 percent, compared with 0.8 percent initially estimated.

The construction industry was among sectors falling the most in the quarter, as it declined by 3.9%. But that was less than the 5.2% initially estimated. Output of the production industries shrank by 0.9%, compared with the previous 1.3% estimate. Services, the largest part of the economy, were unrevised at a 0.1% decline.

The revision may do little to change the broader view of the country's economy. It continues to struggle to recover amid the government's fiscal squeeze and the fallout from the eurozone debt crisis. Earlier this month, Bank of England policy makers cut their growth forecasts and left the door open to more stimulus as needed.

Filed under: 24/7 Wall St. Wire, Economy, International Markets Tagged: featured