Tuesday, December 23, 2008
Pound falls as UK economy contracts
The pound came under further pressure on Tuesday as data showed the UK economy contracted by more than expected in the third quarter. Final figures from the Office for National Statistics showed UK gross domestic product shrank by 0.6 per cent in the three months to September. This was greater than the 0.5 per cent drop expected and the largest fall since the fourth quarter of 1990. Adding further pressure on sterling were figures showing mortgages approved for UK house purchases mortgage sank to just 17,773 in November from 20,767 in October, the lowest since the series started in 1997.