Economic Indicators, March 2013

The most recent ONS estimate showed that GDP contracted by 0.3% in Q4 2012. This was partly due to a 1.3% fall in manufacturing output over the quarter and a 0.1% fall in output from the services sector, which accounts for around three quarters of the UK economy. February 2013 saw the downgrading of the UK’s credit rating by the ratings agency Moody’s from AAA to AA1. So far, this appears to have had a negligible impact on the cost of UK government borrowing. Labour market data released last month were positive, showing another rise in employment and a slight fall in unemployment.