Statistics from the Office for National Statistics (ONS) showed that gross domestic product (GDP) was down by 0.3 per cent, instead of the originally forecasted 0.2 per cent.
Household spending was not as high as previously thought and the powerhouse services sector did not perform as well as expected.
Despite the confirmed figures, the UK is expected to return to growth during the first three months of this year, thus preventing it from falling back into recession.
Howard Archer, an economist at IHS Global Insight, said that statistics were 'disappointing', however it does not change the fact that the UK economy did see some more encouraging signs throughout 2011.
'Attention is now firmly focused on whether the economy has returned to growth in the first quarter - and, if it has, can it build on this in still difficult conditions?' he added.
Peter Dixon, from Commerzbank, noted that the figures from the ONS will make the starting point for 2012 'that little bit more difficult ... it just makes the hill a little bit steeper in order to reach the Office for Budget Responsibility's 0.8 per cent growth target'.
Read more: http://www.metro.co.uk/news/894501-uk-economy-shrank-by-more-than-expected-in-final-quarter-of-2011#ixzz1qRoqEDWx
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