Home | China | World | Business UK Economy Stagnates in Last Quarter of 2001 THU, FEB 28, 2002     Revised government statistics showed that the British economy stagnated during the final three months of last year, casting doubts over forecasts of an imminent economic recovery. The Office for National Statistics said Wednesday that Britain's gross domestic product between October and December 2001 was unchanged from the previous three-month period, reversing its earlier 0.2 percent growth estimate. The economy expanded by just 1.7 percent compared with the same period one year earlier, down from the initial 1.9 percent estimate. The zero growth rate during the final three months of 2001 was the weakest reading since the recession of the early 1990s, suggesting that the economic outlook for 2002 may be bleaker than previously thought. The latest figures prompted speculation that interest rates are unlikely to rise as fast or as high as some economists have been predicting. Last year, the Bank of England cut interest rates seven times to a 34-year low of 4 percent in a bid to stave off recession. On the currency markets, the pound weakened slightly against the dollar and the euro, reflecting expectations that rates are now less likely to climb. The Bank of England's monetary policy committee is due to hold its next rate-setting meeting on 6-7 March. The ONS data added to recent evidence that a year-long slowdown in the manufacturing sector is spilling over into the economically dominant service sector. Service sector growth for the final three months of 2001 was revised down from 0.9 percent to 0.7 percent, while the manufacturing sector continued its slide, contracting by a further 1.7 percent. But consumer spending remained strong, rising by 1.2 percent compared to the previous three-month period. Consumer spending, fueled by an unexpectedly low jobless rate and cheap borrowing costs, has propped up Britain's growth throughout the year-long global economic downturn. Editor:Zhong Source:Xinhua Recommend to your friend email:    China Central Television,All Rights Reserved