UK Economy Suffers Worst Fall In 30 Years

The British economy shrank by 1.9% in the first quarter, a worse-than-feared performance which marks the sharpest quarter-on-quarter fall since 1979.Manufacturing was hit by an estimated 6.2% slump to dragGDP far below consensus forecasts of a 1.5% decline between January and March.The Office for National Statistics data showed savage falls in output for other key sectors, including an accelerated weakening of the service sector, which fell 1.2%.On the year, the economy shrank by 4.1%, the biggest annual drop since the end of 1980 and significantly lower than forecasts for a 3.8% contraction.The figures cast even more doubt on the Chancellor's Budget estimates of a 3.5% fall for the year - as well as the widely-disputed prediction the UK will bounce back into growth in 2010.