Finance News

GDP falls by record 2.2% in Q1: ONS

The figure has been revised from a preliminary estimate of a 2.0% decline.

Rozi Jones
|
1st July 2020
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UK GDP fell by 2.2% in the first quarter of 2020, the joint-third largest quarterly contraction on record, according to revised figures from the ONS.

The figure has been revised from a preliminary estimate of a 2.0% decline and reflects the imposing of public health restrictions and voluntary social distancing in response to the Covid-19 pandemic.

The decline in the first quarter largely reflects the large fall in output in March 2020, with widespread monthly declines in output across the services, production and construction industries.

More timely estimates show that the UK economy fell by an unprecedented 20.4% in April, following a 5.9% contraction in March. This provides the clearest picture of the economic impacts so far, which were in effect from late March.

The annual Consumer Prices Index, including owner occupiers' housing costs (CPIH), has fallen to 0.7% in May 2020, the lowest it has been in four years, with lower petrol and diesel prices and further downward contributions from recreation and culture and restaurants and hotels.

 

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