UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news

MetiNews.Com - It is the largest fall since 1979, according to the Office for National Statistics

UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news

MetiNews.Com - It is the largest fall since 1979, according to the Office for National Statistics

UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news
30 June 2020 - 07:56

Breaking News ! The UK economy dropped more than initially expected between January and March as the Covid-19 crisis saw activity plummet to 2.2% in the joint largest fall since 1979, official figures have shown. Office for National Statistics (ONS) experts previously predicted a 2% drop in first-quarter GDP, but said the revision came about after data now showed a record 6.9% drop in March, when the UK lockdown was introduced. New ONS figures show the economy plummeted by 20.4% in April, which is the largest drop in a single month since records started. Jonathan Athow, deputy national statistician at the ONS, said: "Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated - this is now the largest quarterly fall since 1979. Sign up to the free MEN email newsletter Get the latest updates from across Greater Manchester direct to your inbox with the free MEN newsletter You can sign up very simply by following the instructions here "Information from Government showed health activities declined more than we previously showed. "All main sectors of the economy shrank significantly in March as the effects of the pandemic hit. "The sharp fall in consumer spending at the end of March led to a notable increase in households' savings." There was a sharp drop in consumer spending in March (Image: PA) Experts said the first quarter fall is likely to be followed by a double-digit decline between April and June, with the Bank of England expecting a 20% tumble. The first-quarter figures show that the services sector - which accounts for around three- quarters of UK GDP - shrank by a record 2.3%. All non-essential shops closed their doors from March 23 and were only allowed to reopen in England on June 14, while pubs and restaurants have had to remain shut until later this week. The ONS said production output fell by a revised 1.5% in the three months, driven by declines in manufacturing as factories temporarily shut down, while there was a fall in construction output of 1.7%. Read More Related Articles Man taken to hospital after being pulled from 'fast-moving' stream Read More Related Articles Man taken to hospital after being pulled from 'fast-moving' stream It also revealed that household spending tumbled 2.

.5 billion in the largest ever fall as Britons stayed at home amid the lockdown, which saw the savings ratio rise to 8.6% from 6.6% in the previous three months. An empty Market Street when lockdown was in place in March (Image: ABNM Photography) The data showed that first-quarter GDP was 1.7% lower on a year earlier. Revisions to previous GDP data also revealed that annual GDP rose by 1.5% in 2019, up from the previous estimate of 1.4%. While economists are bracing for a dire set of second-quarter figures, Howard Archer, at the EY Item Club, said April is likely to have marked the low point. He is predicting the economy to "return to clear growth in the third quarter with GDP expanding close to 10% quarter on quarter" as lockdown restrictions ease further. But there were also some gloomy signs for the nation's finances, as ONS data also released on Tuesday showed that Britain's current account deficit widened by more than expected in the first quarter. The balance of payments deficit - the difference between the value of the goods and services a country imports and the goods and services it exports - rose to £21.1 billion or 3.8% of GDP. This means the UK is reliant on inflows of cash from abroad and leaves the pound vulnerable, according to Samuel Tombs, at Pantheon Macroeconomics. He added: "Sterling almost certainly would depreciate sharply again if a major second wave of Covid-19 emerges or if the UK and EU fail to either sign a trade deal or to extend the transition period before the end of this year."

Source =

MetiNews.Com

This news 53 hits received.

UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news


UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news


UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news


UK The UK economy dropped more than initially expected at the beginning of 2020 last minute news

COMMENTS

  • 0 Comment
Last News
MAY INTEREST YOU x
Daily uk news  The Queen DIDN'T order the Governor-General to dismiss Australian prime minister Gough Whitlam - and she didn't even know about it until after he was sacked, bombshell letters reveal  MetiNews.Com
Daily uk news The Queen DIDN'T order the Governor-General to dismiss...
Daily uk news  Alarming rise in stillbirths during coronavirus pandemic emerges as new figures suggest the number has QUADRUPLED at just one London hospital  MetiNews.Com
Daily uk news Alarming rise in stillbirths during coronavirus...