According to new figures, the UK economy contracted in the final quarter of 2011, forcing the UK government and Bank of England to take further action to fuel the economy.

GDP fell by 0.2% at the end of 2011 following 0.6% growth in the third quarter driven by weakness in the production sector and the construction sector.

The Office of National Statistics said output of the production industries decreased by 1.2% in Q4 2011, compared with an increase of 0.2 per cent in the previous quarter and that the
Construction sector output decreased by 0.5% in Q4 2011, compared with an increase of 0.3& in the previous quarter.

Output of the service industries was unchanged in Q4 2011.

Negative figures for Q1 of 2012 could put the UK back in technical recess