Official figures have shown that the British economy shrank at its sharpest rate in 30 years in the first three months of 2009. The figures suggest the country's recession may be deeper than feared.
The Office for National Statistics said gross domestic product fell 1.9% from the previous quarter, the biggest fall since Q3 1979 and worse than economists' forecasts for a 1.5% drop.
GDP fell by an annual rate of 4.1% in the first quarter, the biggest annual drop since the end of 1980. British Chancellor Alistair Darling earlier this week forecast for 3.5% contraction this year.
The data suggest the authorities may need to do more to kick-start the economy, having already slashed interest rates to a record low of 0.5% and started buying assets with newly created money. The British government has also pumped more than £20 billion into the economy.
The ONS data showed the biggest quarterly fall in manufacturing output since records began in 1948 and the biggest quarterly fall in services output since 1979.
UK sales better, but car production dives
Meanwhile, separate ONS figures showed that retail sales in Britain rose by 0.3% in March from February, giving an annual increase of 1.5%. Economists had expected a monthly drop.
Other figures showed that car production in Britain slumped by 51.3% in March compared with a year earlier.
A total 61,829 cars were made last month, the Society of Motor Manufacturers and Traders said in a statement published in a week that saw Britain's government launch a scheme to encourage the purchase of new vehicles.
