Economic Indicators, February 2012

Latest data show that the economy contracted by 0.2% in the final quarter of 2011 compared with the previous quarter. The weakness in economic activity in Q4 2011 was broad-based, with manufacturing output falling by 0.9% and output in services, by far the largest sector of the economy, unchanged. Some indicators have been more positive recently, with purchasing managers’ indices for services and manufacturing showing strong improvements for both sectors in December and January. In addition, business and consumer surveys have in general shown rising confidence in recent months.