There was mixed news on the UK economy, with the fourth quarter gross domestic product (GDP) figure revised up more than expected while the third quarter figures were revised lower.

The Office for National Statistics (ONS) revised its initial estimate of a 0.1% increase in GDP in the fourth quarter to a rise of 0.3%, a figure that was better than the consensus forecast among economists of a 0.2% increase.

Though the upward revision to economic growth will be welcomed by the government, the revised figure still lags the 0.4% increase in GDP that most economists were expecting prior to the initial estimate released last month. The fourth quarter GDP figure may yet be revised again by the ONS.

Third quarter GDP was revised down to show a 0.3% quarterly decline from an initial estimate of a 0.2% fall

Industrial production growth was revised up to 0.4% from 0.1%. Services output growth was revised up to 0.5% from the initial estimate of 0.1%, and represents the biggest quarterly gain since the first quarter of 2008.

Consumer spending also notched up its biggest rise since the first quarter of 2008, up 0.4%, while government spending increased 1.2%. Fixed capital investment, however, fell 3.1%..

Revisions to previous readings meant that the decline in gross domestic product on a year on year basis actually widened to 3.3%, versus expectations of a 3.1% annual decline.

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