UK contraction worse than thought

The UK economy shrank by more than previously thought during the last three months of 2010, revised figures suggest.

Gross domestic product (GDP) slipped by 0.6% in the period, according to fresh data from the Office for National Statistics.

Its initial estimate had suggested the economy had contracted by 0.5% – with heavy snow blamed for the slump.

The data may mean a rise in interest rates will not come as soon as thought.

Documents from the bank of England’s ratesetters, released on Wednesday, had hinted that those who had opposed a hike in rates this month would consider a change in stance if the UK’s revised GDP figures, suggested the economy had picked up.

But this surprise data paints a gloomier picture of the UK economy.