Research reveal further UK economy shrink

The UK economy shrank by more than previously thought during the last three months of 2010, according to revised figures.

Gross domestic product (GDP) slipped by 0.6% in the period, according to fresh data from the Office for National Statistics (ONS).

Its initial estimate had suggested the economy had contracted by 0.5% - with heavy snow blamed for the slump.

However the ONS said that the revision was not a dramatic one.

Joe Grice, Chief Economist at ONS, said, "The snow effect we think is still 0.5%. On the basis of that, the economy is still flattish at minus 0.1%. The overall picture is still a flattish underlying economy in the fourth quarter."

Worries are growing about the recent pick-up in inflation, boosted by rising commodity prices and the VAT increase.