Forex News

Britain’s economy contracts 2.2% in Q1

Britain’s economy contracts 2.2% in Q1

The British economy contracted 2.2 percent in first quarter this year, biggest contraction since 1979, where the reading only captured the first impact of the Covid-19 pandemic.

Analysts had predicted no revision of 2 percent drop, following a stall in last quarter of 2019.

From a year earlier, the economy slumped 1.7 percent, revised downwardly from -1.6 percent, while the previous reading was 1.1 percent growth.

Services output plunged by a record 2.3 percent in the January-March quarter, while household spending also experienced a sharp fall.

“Households’ consumption spending decreased by £9.5 billion (negative 2.7%) in Quarter 1 2020, the largest quarterly fall in nominal household spending of this type ever recorded,” the ONS said.

At press time, the GBPUSD traded lower for a third straight session at 1.2284, hovering near its lowest level since May 28.

Share Article