Friday, Jul 24, 2009

UK GDP Contracts Further Than Expected

ONS: UK output decreases by 0.8 per cent

Gross Domestic Product (GDP) decreased by 0.8 per cent in the second quarter of 2009, compared with a decrease of 2.4 per cent in the first quarter. The decline in output was due to decreases in all component aggregate series.
Construction output decreased by 2.2 per cent, compared with a decrease of 6.9 per cent in the previous quarter.
Total production output declined in the second quarter, decreasing by 0.7 per cent, compared with a fall of 5.1 per cent in the previous quarter. Electricity, gas and water made the largest contribution to the decline falling by 3.8 per cent, compared with a fall of 3.7 per cent in the previous quarter. Manufacturing output fell by 0.3 per cent compared with a decrease of 5.5 per cent in the first quarter. Mining and quarrying fell by 1.0 per cent...

Posted by 51ck-6-51x @ 09:47 AM (572 views) Add Comment

4 Comments

1. uncle tom said...

Total contraction is still a very long way short of accounting for that part of the economy that was the product of unsustainable debt growth.

That nettle really hasn't really been grasped yet, and is being shielded by massive government deficits and QE

I don't believe that the combination of low interest rates on the one hand, and printing cash on the other, can be sustained for very long..

Friday, July 24, 2009 09:56AM Report Comment
 

2. timmy t said...

Bang on UT - if a 0.8% decline with green shoots is the best we can manage with interest rates at 0.5% and billions of new money being pumped into the system, you have to worry what is going to happen when these come to an end. Which they have to.

Friday, July 24, 2009 10:03AM Report Comment
 

3. little professor said...

Yikes- much worse than expected. From this morning's telegraph:

"The British economy came close to pulling out of its worst recession in decades in the second quarter, figures due to be published on Friday are expected to show. City experts are forecasting the economy's contraction to have slowed to 0.3pc in the quarter to the end of June compared with a 2.4pc slump in the first three months after Christmas. The figures will underline the degree to which the economy has stabilised after the dramatic freefall in the global economy."

Friday, July 24, 2009 11:08AM Report Comment
 

4. paranoia blue said...

Please can someone notify the Stock-market!

Friday, July 24, 2009 11:30AM Report Comment
 

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