UK DATA: Q4 GDP revised down to -0.6% q/q; +1.5% y/y.

UK DATA: Q4 GDP revised down to -0.6% q/q; +1.5% y/y
–Q4 GDP below median forecast of -0.5% q/q; +1.7% y/y
–Q4 household spending -0.1% q/q; +0.4% y/y
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GDP was revised down in Q4 due to weaker manuf and services, with
the latter now down 0.7% q/q vs previous 0.5% fall. NS said that the
severe weather hit GDP growth by 0.5pp. New data on spending and here we
see that household spending fell 0.1% q/q, the first drop since Q2 09.
The largest hit to q/q GDP came from investment with fixed capital
formation -2.5% q/q knocking 0.4pp off GDP. Also net trade knocked 0.3pp
off GDP with the external sector still not helping to boost GDP. The
main add to growth came from govt. spending which was up 0.7 q/q. The
data will arouse fears over the household sector and with govt. spending
set to be cut this year and the external sector still not helping
growth, the main question is where growth will come from over 2011.