Recession in the UK over allegations of bad

LONDON (Bloomberg): economic contraction in the UK in the IV quarter of the estimated more poorly, while weakening consumer spending and construction worst at point reached in 1980.

Gross domestic product (GDP) decreased 1.6% from the third quarter, exceeding an average of 27 economists predicted at 1.5% in a Bloomberg News survey. Construction spending decreased 4.9% while consumer spending weakened 1%.

Chief Economist Bank of England Spncer Dale said the short-term economic prospects bleak English. Shopping in the shops and homes had fallen after the bank cut the credit and financial crisis menypu properties consumers 1.9 trilin pounds (U.S. $ 2.7 trillion).

"Data main disappointing. We estimate a recession occur until mid-year. It is very difficult to see at least until the recovery kuartl III, "said Philip Shaw, chief economist at Investec Securities in London.

Exchange rates pound weakened 0.6% after spend of data, which shows the worst contraction since 1980 in the Margaret Thatcher government.

PM Gordon Brown, who feel down in popularity over the recession, the government signed an agreement with Royal Bank of Scotland Group Plc and Lloyds Banking Group to encourage the provision of credit.