Poor outlook in UK takes its toll on sterling

Britain’s economy contracted by a greater than expected 0.3% in the final quarter of 2012, led by a sharp 1.8% fall in industrial output, with manufacturing production down by 1.5% and mining and oil output falling by over 10%.

Service sector output was unchanged, while construction output rose by 0.3% in the quarter.

The decline in the fourth quarter came after a strong 1% rise in Q3, which was preceded by a fall in GDP in the first half of the year.