Menu
23/01/2009
Britain 'Officially In A Recession'
Fears that Britain is in a recession have been confirmed today, with the publication of the worst quarterly contraction since 1980.
The economy contracted by 1.5% in the final three months of 2008 - the worst performance in over 28 years - according to the Office for National Statistics (ONS).
This means the "technical" definition of a recession - two consecutive quarters of falling economic growth - has been met.
Britain was last in a recession in 1991, while the last time Gross Domestic Product (GDP) suffered a bigger fall - quarter-on-quarter - was between April and June 1980, when the economy was in deep downturn.
The statistics confirmed manufacturing made the largest contribution to the slowdown, contracting by 4.6%, following a 1.6% decrease in the previous quarter.
The service sector slumped by 1%, driven by a 2.4% drop at hotels and restaurants. Financial and business services dropped by 0.5%.
However, retail sales grew by a surprising 1.6% in December.
But the ONS said the value of sales fell 0.8% compared with last year, the worst performance since records began in 1986.
Unemployment is also accelerating at an alarmingly fast rate, increasing from 131,000 to 1.92 million people now out of work, with thousands of jobs culling staff as the recession takes a grip on the UK.
A lack of lending from banks has also hit the housing and construction sectors hard, meaning all sectors are now affected.
The worse-than-expected results sent sterling to a new-year low against the dollar - one pound now buys $1.3612.
The FTSE 100 index fell almost 2%, below 4,000.
(JM/BMcC)
The economy contracted by 1.5% in the final three months of 2008 - the worst performance in over 28 years - according to the Office for National Statistics (ONS).
This means the "technical" definition of a recession - two consecutive quarters of falling economic growth - has been met.
Britain was last in a recession in 1991, while the last time Gross Domestic Product (GDP) suffered a bigger fall - quarter-on-quarter - was between April and June 1980, when the economy was in deep downturn.
The statistics confirmed manufacturing made the largest contribution to the slowdown, contracting by 4.6%, following a 1.6% decrease in the previous quarter.
The service sector slumped by 1%, driven by a 2.4% drop at hotels and restaurants. Financial and business services dropped by 0.5%.
However, retail sales grew by a surprising 1.6% in December.
But the ONS said the value of sales fell 0.8% compared with last year, the worst performance since records began in 1986.
Unemployment is also accelerating at an alarmingly fast rate, increasing from 131,000 to 1.92 million people now out of work, with thousands of jobs culling staff as the recession takes a grip on the UK.
A lack of lending from banks has also hit the housing and construction sectors hard, meaning all sectors are now affected.
The worse-than-expected results sent sterling to a new-year low against the dollar - one pound now buys $1.3612.
The FTSE 100 index fell almost 2%, below 4,000.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
25 October 2012
Olympics Help Pull Economy Out Of Recession
Newly published figures have shown that the Olympic Games helped the economy emerge from recession in the three months from July to September. The economy grew by 1.0%, according to official gross domestic product figures (GDP), which measure the value of everything produced in the country. Olympic ticket sales added 0.
Olympics Help Pull Economy Out Of Recession
Newly published figures have shown that the Olympic Games helped the economy emerge from recession in the three months from July to September. The economy grew by 1.0%, according to official gross domestic product figures (GDP), which measure the value of everything produced in the country. Olympic ticket sales added 0.
24 May 2012
UK's Economy Slips Further Into Recession
Britain's economy contracted by 0.3% in the first three months of the year, faster than previously thought the Office for National Statistics (ONS) have said. George Osborne will now face increasing pressure to explain how the coalition plans to drag the country out of recession.
UK's Economy Slips Further Into Recession
Britain's economy contracted by 0.3% in the first three months of the year, faster than previously thought the Office for National Statistics (ONS) have said. George Osborne will now face increasing pressure to explain how the coalition plans to drag the country out of recession.
02 December 2009
PM's Question's Centre On Recession
Gordon Brown defended his predictions on the length and depth of the UK recession during a heated Prime Minister's Questions today. Opposition leader David Cameron said the government's forecasts were wrong, suggesting the UK was the only leading world economy still in contraction.
PM's Question's Centre On Recession
Gordon Brown defended his predictions on the length and depth of the UK recession during a heated Prime Minister's Questions today. Opposition leader David Cameron said the government's forecasts were wrong, suggesting the UK was the only leading world economy still in contraction.
06 August 2009
No Change For Interest Rate
The UK's interest rates has remained unchanged today as the Bank of England left the level set at 0.5%. The Monetary Policy Committee's (MPC) second decision, to expand quantitative easing (QE) at the same time, underlines the caution among policymakers over the strength of the UK's recovery from recession despite recent positive signs.
No Change For Interest Rate
The UK's interest rates has remained unchanged today as the Bank of England left the level set at 0.5%. The Monetary Policy Committee's (MPC) second decision, to expand quantitative easing (QE) at the same time, underlines the caution among policymakers over the strength of the UK's recovery from recession despite recent positive signs.
12 November 2008
Pre-Budget Date Announced
The Chancellor's pre-Budget report is to be published on Monday 24 November, it has been confirmed. It is highly-anticipated that the findings in the report will lead to tax cuts, aimed at stimulating the economy, amid fears of a UK recession.
Pre-Budget Date Announced
The Chancellor's pre-Budget report is to be published on Monday 24 November, it has been confirmed. It is highly-anticipated that the findings in the report will lead to tax cuts, aimed at stimulating the economy, amid fears of a UK recession.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
