Construction drags down UK economy

Tough trading conditions in construction has helped drag the UK economy into its biggest quarterly decline in 51 years.

The BBC reported that the economy contracted 2.4% in the first quarter of 2009 - more severe than the earlier estimate of a 1.9% fall and worse than analysts' expectations.

The Office for National Statistics (ONS) said that the sharp downward revision weaker output in the construction and manufacturing sectors.

It also said the recession started earlier than first thought last year.

But the Chief Secretary to the Treasury, Liam Byrne, said it would not be revising its forecast.

"There have been some tentative signs that the fall in output is moderating and I remain confident but cautious about the prospects for the economy," he added.