MNI DATA IMPACT: UK GDP Plunges in Dec, Q4 Expands Modestly>

By Les Commons and Laurie Laird

     LONDON (MNI) - The following are the key points from the fourth 

quarter National Accounts data published Friday by the Office for 

National Statistics. 

     - While Q4 GDP increased by an unrevised 0.2%, Friday's national 

accounts suggested signs of consumer caution. Household spending 

increased by a downwardly-revised 0.3%, making its smallest 

contribution to growth in two years. 

     - Meanwhile households borrowed some Stg3.440 billion in Q4, the 

ninth straight quarter of overspending, the longest stretch since 

records began in early 1987.    

     - National Statisticians reported no empirical evidence of 

pre-Brexit stockpiling, despite reports to the contrary in recent 

business surveys. Inventories actually decreased by Stg1.2 billion in Q4 

after adjusting for statistical alignments. 

     - Business investment declined by 0.9%, less dramatically than 

originally-reported. That's still the fourth straight decline in 

investment, the longest stretch since the depths of the financial 

crisis. 

     - Financial and insurance activity declined 1.0% Q/Q in Q4,the 7th 

straight quarter of flat or negative growth. It was the largest q/q 

decline since Q2 2015.There has been only one quarter of expansion in 

the sector since the June 2016 vote to leave the EU. 

     - The current account deficit widened to 4.4% of GDP, largely due 

to a significant downward revision to the Q3 shortfall, which declined 

to 4.3% of GDP from the originally-reported 5.0%        

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com 

[TOPICS: M$B$$$,MABDS$,MAUDR$]