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Slowest Uk Gdp Growth In 12 Years

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The UK economy was growing at an annual rate of just 1.5% in the second quarter of 2005, according to new figures.

The unexpected revision meant that UK growth was at its weakest since 1993.

In the three months to June, UK GDP grew by 0.5% compared to the previous quarter, the Office for National Statistics (ONS) said.

Changes to public administration, defence, transport and storage and the motor trade led to the downward revision of the annual figure.

Chancellor Gordon Brown admitted at the weekend that economic growth in the UK was unlikely to reach his forecast of 3-3.5% this year.

He accepted that higher oil prices would lead to slower growth after criticism from the International Monetary Fund and other independent forecasters.

Consumer spending

However, there was better news on consumer spending, which grew by a revised 0.4%, not 0.2% as previously thought.

The increase was due to higher spending on home improvements and overseas spending.

With consumer spending the main driver of the economy, this suggests that the Bank of England may be in no hurry to make further cuts in interest rates.

And the balance of payments improved with a revised current account deficit of £3.05bn in the second quarter, the smallest since 2003.

And there we have it, this is happening a lot faster than even the last recession, its in superfast crash mode.

its switched from the best gdp in 12 years in 1 year to the worst.

what a drop

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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