You are here: Home - Investing -

UK recession confirmed as GDP falls 0.3%

Written by:
The UK economy shrank by 0.3% in the first quarter, the final official reading has confirmed. Data from the Office for National Statistics (ONS) left the fall in UK GDP unrevised from the previous estimate.

The fall was in line with estimates, and means the UK is officially back in recession following a 0.3% decline in Q4.

The main cause of the decline in Q1 was down to the manufacturing and production industries.

Output of the production industries fell 0.5%, while manufacturing output shrank by 0.3%, a worrying sign given the coalition government’s plans to grow the economy out of recession by re-building the UK’s manufacturing industry. The fall in GDP comes against a backdrop of global economic woe.

The eurozone crisis continues to impact Europe’s trading partners globally, with the Bank of England expected to expand QE soon to counter the headwinds and try to generate inflation.

CPI inflation fell to 2.8% in May, and could well fall below the 2% target if the economic downturn persists.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Defined contribution continues to dominate UK private sector pensions

Defined contribution is continuing to dominate pensions in the UK's private sector, as the decline of defined benefits schemes accelerates,...