Menu
24/04/2009
UK Economy Shrinks At Fastest Rate In 30 Years
The British economy shrank by 1.9% in the first three months this year, according to gross domestic product (GDP) data from the Office for National Statistics (ONS).
The contraction, which is the worst in 30 years, follows a 1.6% slump in the last three months of 2008. The last time a three-month decline was as sharp was in 1979, the year when Margaret Thatcher came into power.
Alistair Darling, the Chancellor, who gave his Budget speech on Wednesday, is likely to be embarrassed by the figure, as he predicted that the first quarter contracted "by a similar amount" to the fourth quarter of 2008.
The manufacturing sector was also affected, with the biggest quarterly fall in output between January and March recorded, since the start of official records in 1948.
Vicky Redwood, UK economist for Capital Economics, said today's figures "deal an instant blow for the Chancellor's forecast of a 3.5% drop in GDP this year".
She added: "For that to be achieved, GDP would have to be broadly flat from the second quarter onwards, yet the surveys are already pointing to another fall of 1% or so in the second quarter."
Treasury Chief Secretary Yvette Cooper said the worse-than-predicted figures made no change to the Government’s projections for recovery.
She said: "We set out our forecasts on Wednesday and those are the forecasts we believe are right for this year."
The International Monetary fund (IMF) warned two days ago that Britain would remain in a recession for another year, as consumers cut spending.
A 4.1% decline for 2009 was also predicted by the organisation, with a 0.4% contraction in 2010.
(JM/BMcC)
The contraction, which is the worst in 30 years, follows a 1.6% slump in the last three months of 2008. The last time a three-month decline was as sharp was in 1979, the year when Margaret Thatcher came into power.
Alistair Darling, the Chancellor, who gave his Budget speech on Wednesday, is likely to be embarrassed by the figure, as he predicted that the first quarter contracted "by a similar amount" to the fourth quarter of 2008.
The manufacturing sector was also affected, with the biggest quarterly fall in output between January and March recorded, since the start of official records in 1948.
Vicky Redwood, UK economist for Capital Economics, said today's figures "deal an instant blow for the Chancellor's forecast of a 3.5% drop in GDP this year".
She added: "For that to be achieved, GDP would have to be broadly flat from the second quarter onwards, yet the surveys are already pointing to another fall of 1% or so in the second quarter."
Treasury Chief Secretary Yvette Cooper said the worse-than-predicted figures made no change to the Government’s projections for recovery.
She said: "We set out our forecasts on Wednesday and those are the forecasts we believe are right for this year."
The International Monetary fund (IMF) warned two days ago that Britain would remain in a recession for another year, as consumers cut spending.
A 4.1% decline for 2009 was also predicted by the organisation, with a 0.4% contraction in 2010.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
28 August 2009
Economy 'Contraction' Slowing
The rate at which the UK economy is contracting has been reduced. In the three months from April to June the Office for National Statistics (ONS) said gross domestic product (GDP) dropped by 0.7% from 0.8% compared with the previous quarter. Year-on-year decline has been reduced to 5.5% from 5.6%.
Economy 'Contraction' Slowing
The rate at which the UK economy is contracting has been reduced. In the three months from April to June the Office for National Statistics (ONS) said gross domestic product (GDP) dropped by 0.7% from 0.8% compared with the previous quarter. Year-on-year decline has been reduced to 5.5% from 5.6%.
26 April 2005
BP reports profit increase
BP profits have announced a rise in profit in their first quarter report for the company's new trading year. The oil company confirmed that its first quarter replacement cost profit was £5,491 million, an increase of 29% from the same period in 2004.
BP reports profit increase
BP profits have announced a rise in profit in their first quarter report for the company's new trading year. The oil company confirmed that its first quarter replacement cost profit was £5,491 million, an increase of 29% from the same period in 2004.
15 May 2009
75,000 Repossessions This Year 'Now Looks Pessimistic'
There were 12,800 repossessions by first-charge mortgage lenders in the first quarter of this year, according to the Council of Mortgage Lenders (CML). This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008.
75,000 Repossessions This Year 'Now Looks Pessimistic'
There were 12,800 repossessions by first-charge mortgage lenders in the first quarter of this year, according to the Council of Mortgage Lenders (CML). This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008.
26 January 2010
UK Emerges From Recession
The British economy has officially moved out of recession. Growth during the last three months of 2009 was recorded at 0.1%, a much smaller than predicted trajectory. The economy had shrunk for six continuous quarters, the deepest dip in over 50 years.
UK Emerges From Recession
The British economy has officially moved out of recession. Growth during the last three months of 2009 was recorded at 0.1%, a much smaller than predicted trajectory. The economy had shrunk for six continuous quarters, the deepest dip in over 50 years.
17 April 2003
Regional imports suffer £1bn slump
Government figures released today have revealed that the value of regional imports has slumped by around £1 billion over the past quarter. According the Customs and Excise report, estimates for the fourth quarter 2002 saw regional imports dip £1 billion, or 2%, on the third quarter's figures to £51.4 billion.
Regional imports suffer £1bn slump
Government figures released today have revealed that the value of regional imports has slumped by around £1 billion over the past quarter. According the Customs and Excise report, estimates for the fourth quarter 2002 saw regional imports dip £1 billion, or 2%, on the third quarter's figures to £51.4 billion.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
