UK Economy shrinks by 0.6%

During the last 3 months of 2010, the UK’s economy suffered a disappointing setback. GDP (Gross Domestic Product) decreased by 0.6% from October to December, something which nobody wanted to see.

Last years extremely bad weather has been burdened with a lot of the blame for this economic slump, with the huge amounts of snow driving people away from the high street, however the shrink was still more than the 0.5% expected due to the snow, fuelling fears that we could very well be heading on the dangerous path to a ‘double-dip’ recession.

The governments V.A.T rise and deep spending cuts have already been met with plenty of apprehension and questioning by financial experts and the public alike, and if this shrinking continues, you can guarantee the apprehension will turn to anger.

This news however, does follow the announcement a few days ago of ecommerce sales rose in both December and January based on last year, more stronger evidence that to increase sales and growth, more and more companies need to be getting online.