• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Business and Economics Economics

UK one negative quarter away from recession as economy shrinks in second quarter

Economists had predicted growth to flatline at 0 per cent – but GDP actually contracted by 0.2 per cent, a fairly big miss.

Jack Peat by Jack Peat
2019-08-09 09:42
in Economics
FacebookTwitterLinkedinEmailWhatsapp

Britain is one negative quarter away from a recession after the economy shrank in the second quarter.

ONS data released today showed the economy contracted by 0.2 per cent in the second quarter following growth of 0.5 per cent in Q1.

Sterling has fallen against the US dollar and the euro in the aftermath of the GDP figures.

The pound is now down by 0.3 per cent against the euro and 0.25 per cent against the US dollar, after UK economic growth came in significantly lower than expected.

Economists had predicted growth to flatline at 0 per cent – but GDP actually contracted by 0.2 per cent, a fairly big miss.

It is the first time the UK economy has contracted since 2012, with the abrupt loss of momentum coming as many firms ran down inventories built up ahead of the original March 29 deadline to leave the European Union.

New Statesman Assistant Editor George Eaton warned that the UK is in a “far weaker position for another recession than in 2008” because there’s less room for fiscal and monetary stimulus.

UK in far weaker position for another recession than in 2008: 1. Threat of no-deal Brexit. 2. Interest rates already just 0.75% (compared to 5% in 2008). 3. Government debt is 83.1% of GDP (compared to 35.2% pre-crisis). Less room for fiscal and monetary stimulus.

— George Eaton (@georgeeaton) August 9, 2019

Stock levels fell by 4.4 billion pounds ($5.3 billion), knocking 2.15 percentage points off GDP.

The economy was also hit by auto factories bringing forward summer maintenance shutdowns to April to avoid the threat of supply disruptions around the original Brexit deadline.

RelatedPosts

Reeves caves in to non-doms after ‘intense lobbying’

UK set to be the fastest growing European economy – IMF

UK economy returns to growth as GILTs and inflation start to cool

Trump announces a US tax on the World

Manufacturing, which enjoyed a bumper first quarter, shrank 2.3 per cent in the following three months, the most since 2009.

Tags: headline
Please login to join discussion

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← Former Sainsbury’s CEO says there will be “gaps on the shelves within a week” in no deal Brexit ← Lukaku transfer to Inter Milan confirmed
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->