- ICM Commercial & Business News - http://news.icm.ac.uk -

UK economy contracts 2.4%

Posted By admin On June 30, 2009 @ 3:11 pm In Business, Construction, Finance | No Comments

Output in the UK dropped dramatically in the first quarter of 2009, with the construction sector performing the worst. Output in the UK dropped dramatically in the first quarter of 2009, with the construction sector performing the worst.

According to recent data from the Office for National Statistics (ONS), the UK economy contracted 2.4% in the first quarter of 2009 – the biggest quarterly decline since 1958.

A 2.4% fall is a much larger contraction than anticipated, with the previous estimate standing at 1.9%.

The sharp fall in the UK economy is being blamed primarily on the construction and manufacturing sectors. Construction output fell by 6.9% over the quarter, compared with the fall of 5% in the previous quarter. Output in the service sector also fell by 1.6%.

Household expenditure fell by 1.3%, along with falls in consumption of household goods, services, hotels and restaurants and motor vehicles.

Economic output shrunk 4.9% over the year, which is the biggest year-on-year fall on record.

The new data from the ONS shows that recession may have begun earlier than initially thought, with signs pointing to the second quarter of 2008 as the official start of recession in the UK. Subsequently, the ONS reports that the recession has now been ongoing for an entire year.


Article printed from ICM Commercial & Business News: http://news.icm.ac.uk

URL to article: http://news.icm.ac.uk/business/uk-economy-contracts-24/2420/

Copyright © 2009 ICM Commercial & Business News. All rights reserved.