LONDON (MNI) – UK output rose by 0.1% in the three months through
December, the National Institute of Economic and Social Research said
today.

NIESR said that this put growth for the whole of 2011 at 1.0%,
compared with 2.1% in 2010. The latest data are in line with other
surveys and data releases which show that the economy is broadly
stagnating.

Some analysts have predicted a small contraction in Q4 growth, but
if the NIESR prediction proves to be right, at least the UK is likely to
avoid a technical recession.

The estimate follows the release of weak manufacturing and
industrial production data by National Statistics this morning. The
November industrial production data showed a fall of 0.6% on the month
following a 0.9% fall in October.

Even if industrial production bounced back strongly in December
output looks likely to knock 0.1 to 0.2 percentage points of quarterly
Q4 GDP growth.

–London bureau: +44207862 7492; email: dthomas@marketnews.com

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