• Quarterly GDP unrevised at -0.3%
  • Household consumption rose by 0.4% in Q4 2012, revised up from 0.2%
  • Main factors contributing to fall in GDP were the decline in investment and the £6.0bn trade deficit

Commenting on the third GDP estimate for Q4 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The unrevised decline on the quarter was expected by most commentators, but we must remember that the economy recorded positive growth of 0.3% for 2012 as a whole. This compares favourably with the eurozone where GDP declined last year. Although there was an increase in consumer spending, business investment is down and the trade deficit widened with a sharper fall in exports compared with imports. These figures are a reminder that growth is still weak, and the government must implement additional growth measures to those announced in the recent Budget.

“There is no reason to be overly gloomy in reaction to these figures. Businesses remain confident, and following the strong retail sales figures published few days ago, we believe GDP has every chance of returning to positive territory in the first quarter of 2013.”


Notes to editors:

ONS: http://www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q4-2012/index.html

Media contacts:

Case studies available for interview. Please contact the press office.

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020 7654 5813 / 07825746812

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk