UK recession confirmed as GDP falls 0.3%

clock

The UK economy shrank by 0.3% in the first quarter, the final official reading has confirmed.

Data from the Office for National Statistics (ONS) left the fall in UK GDP  unrevised from the previous estimate.

The fall was in line with estimates, and means the UK is officially back in recession following a 0.3% decline in Q4.

The main cause of the decline in Q1 was down to the manufacturing and production industries.

Output of the production industries fell 0.5%, while manufacturing output shrank by 0.3%, a worrying sign given the coalition government's plans to grow the economy out of recession by re-builidng the UK's manufacturing industry.

The fall in GDP comes against a backdrop of global economic woe.

The eurozone crisis continues to impact Europe's trading partners globally, with the Bank of England expected to expand QE soon to counter the headwinds and try to generate inflation.

CPI inflation fell to 2.8% in May, and could well fall below the 2% target if the economic downturn persists.

More on Regulation

FCA chair: Name and shame plans 'valid' despite 'stern reaction'

FCA chair: Name and shame plans 'valid' despite 'stern reaction'

Ashley Alder was speaking at a Treasury Committee hearing

Cristian Angeloni
clock 09 May 2024 • 4 min read
Trade bodies call for chancellor to stop FCA public enforcement

Trade bodies call for chancellor to stop FCA public enforcement

‘Proposals to publicise investigations are a worrying development’

Isabel Baxter
clock 29 April 2024 • 2 min read
Johnny Timpson criticises DWP's vulnerable customer practices

Johnny Timpson criticises DWP's vulnerable customer practices

Calls for DWP’s approach to be brought in line with regulated sectors

Jaskeet Briah
clock 26 April 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read