UK not yet in official recession as GDP revised down
UK not yet in official recession as GDP revised down
Tuesday 23rd December 2008
Fears that GDP would be revised downwards to put the UK in official recession were not realised today.Revisions to existing GDP figures from the Office for National Statistics (ONS) show zero per cent growth was still recorded in the second quarter of 2008, while growth in the third quarter was revised downwards from a fall of 0.5 per cent to a decline of 0.6 per cent.
A further decline is expected for the final quarter of the year which would put the UK officially into recession, defined as two consecutive quarters of falling economic growth.
Jonathan Loynes, chief European economist at Capital Economics, now predicts a one per cent cut in GDP for the final quarter of 2008.
"With GDP shaping up to fall by as much as one per cent or more in Q4 - providing a very weak platform for next year - we now expect the economy to contract by around 2.5 per cent in 2009," he said.
He added the saving ratio for households was also growing - as families batten down the hatches in the face of the economic storm - which was depressing spending levels further.
Related News
Monday was busiest shopping day of the year - 23/12/08
Yesterday was the busiest shopping day of the year, with higher shopper numbers expected today and December 24th
Yesterday was the busiest shopping day of the year, with higher shopper numbers expected today and December 24th
FTSE 100 sees early gains - 23/12/08
The FTSE 100 was up a touch this morning on a slow morning of trading
The FTSE 100 was up a touch this morning on a slow morning of trading
Tea shop Whittard faces closure - 23/12/08
Whittard of Chelsea could face closure, as the chain looks like becoming the latest victim of the economic slowdown
Whittard of Chelsea could face closure, as the chain looks like becoming the latest victim of the economic slowdown
News Article Search
Quick Apply
News Archive