The latest GDP figures have confirmed GDP decreased by 0.2 per cent in the fourth quarter of 2011, in a second revision from the Office for National Statistics.

This figure compares to growth of 0.6 per cent in the third quarter of 2011.

Over the year, GDP grew by 0.8 per cent, compared to 2.1 per cent in 2010.

The economy, however, is yet to recover even half of the output lost during the 2008/09 downturn when GDP declined by more than seven per cent.

Growth in business services and finance was revised upwards by 0.1 per cent to 0.1 per cent, compared to growth of 1.3 per cent in the third quarter.

The main reasons for growth in that sector were employment activities and architectural engineering.

Growth in manufacturing output was revised upwards by 0.1 per cent but still fell by 0.8 per cent.

Growth in distribution, hotels and restaurants was revised down by 0.1 per cent to a fall of 0.6 per cent and growth in government and other services was revised down by 0.1 per cent to a growth of 0.3 per cent.

Household expenditure grew for the first time in five quarters with growth of 0.7 per cent, possibly due to the significant number of discounts in shops.

The next GDP figure will be published on 28 March.