The UK economy shrank by the most in more than half a century in the first three months of the year, according to revised figures which were much weaker than originally estimated.
The 2.4 per cent decline in gross domestic product was sharper than the 1.9 per cent initially calculated, the Office for National Statistics reported, and was greater than the 2.1 per cent fall expected by economists. About half the revision was due to the introduction of new construction sector data and the rest was bacause of more complete services sector figures showing a sharper decline.
Not since 1958 has the quarter-on-quarter decline in GDP been greater, while the 4.9 per cent drop compared to a year earlier was the largest since records began in 1948.
“‘You’ve never had it so bad’ seems the most apt summary of the state of the UK economy in Q1,” said Ross Walker, economist at RBS. “Although to some extent this is ‘old news’, it does serve to emphasise the size of the hole out of which the UK must climb.”
The precipitous decline in GDP in the first quarter reflected the fallout after the credit crisis escalated dramatically from September of last year onwards and highlights the depth of the recession that the UK has been suffering.
But since the end of the first quarter there have been growing signs that the economy is stabilising. Manufacturing output actually grew in March and April, while survey data suggested the economy has returned to growth.The respected economics thinktank, the National Institute for Economic and Social Research, said it thought the economy began to grow again in April.
“The survey data suggest we have at least stopped digging, but the economy remains on course for a lacklustre pace of recovery,” Mr Walker said.
The Bank of England has warned that the economy faces a slow recovery, as banks remain fragile and lending weak.
The output of the construction was revised down to show a 6.9 per cent decline from the first estimate of a 2.4 per cent drop. However, the fall in output was actually less severe than the 9 per cent fall that a more recent ONS revision had suggested, which had led many to expect GDP to be revised down sharply.
Services output, which makes up about three quarters of the UK economy, was revised down to see a drop of 1.6 per cent rather than the 1.2 per cent orginally reported.
“Revisions to GDP are larger than usual, reflecting greater uncertainty in measurement during a period of rapid change in economic activity,” the ONS said.
The GDP figures confirmed that the recession began in the second quarter of last year, after the economy shrank by 0.1 per cent in the April to June period, rather than the 0.0 per cent decline originally reported.
The economy contracted by 4.9 per cent from its peak in the first quarter until the first quarter this year. That is worse than the 2.5 per cent drop in the 1990s recession, but less than the 5.9 per cent fall in the early 1980s recession.
Despite the dramatic contraction in the economy rating agency Fitch reconfirmed the top triple-A rating on the UK’s sovereign debt at stable - along with the US, France and Germany - refusing to follow rival Standard & Poor’s which recently changed the UK’s debt outlook to negative.
The household saving ratio fell to 3 per cent from 4 per cent in the final quarter of last year, as households’ real disposable income dropped by 2.4 per cent due to lower earnings, but consumption did not fall as sharply.
Business investment fell by 7.1 per cent during the quarter. Inventories made a smaller drag of 0.4 percentage points out of the 2.4 per cent fall in GDP, compared to the previous estimate of 0.6 percentage points.
“The UK national accounts … underline the fact that the economic recovery is built on very fragile foundations,” said Capital Economics.
“With the annual rate pulled down from -4.1 per cent to -4.9 per cent, average GDP growth in 2009 now looks likely to be -4 per cent or weaker rather than the -3.5 per cent we previously expected.
“Note too that the breakdown is not pretty, with the renewed fall in the household saving ratio from 4 per cent to 3 per cent underlining that the adjustment in the household sector has a long way yet to go.”
Àâòîìîáèëüíûå ïîäúåìíèêè, áàëàíñèðîâî÷íûå ñòàíêè, êîìïðåññîðû, îáîðóäîâàíèå ýêñïðåñc-ñåðâèñà, îáîðóäîâàíèå äëÿ êóçîâíîãî ðåìîíòà, ñèñò…
àâòîðåìîíò…
Øèðîêèé ñïåêòð ñîâðåìåííîãî øàõòíîãî è ãîðíîîáîãàòèòåëüíîãî îáîðóäîâàíèÿ íàñ÷èòûâàåò áîëåå 100 íàèìåíîâàíèé…
âèáðàòîðû, ãðîõîòû, æåëåçîîòäåëèòåëè…
àñôàëüòîóêëàä÷èêè, àâòîêðàíû, áóëüäîçåðû, ãðåéäåðû, êàòêè, ïîãðóç÷èêè, ýêñêàâàòîðû…
Ïîãðóç÷èêè èñïîëüçóþòñÿ äëÿ çàñûïêè, ðàñêîïêè, âûðàâíèâàíèè è äðóãèõ ðàáîò ñ ðàçëè÷íûìè ìàòåðèàëàìè…
Êàê çàðàáîòàòü â èíòåðíåòå…
èíñòðóêöèè ïî çàðàáîòêó â ñåòè…
Ïÿòèçâåçäî÷íûå îòåëè Åãèïòà…
Åãèïåò - æåì÷óæèíà ìèðîâîé êóëüòóðû…
Âèäû âåíòèëÿöèîííîãî îáîðóäîâàíèÿ…
Ñèñòåìû âåíòèëÿöèè…
Ãîðîä Ñèäå ðàñïîëîæåí íà ïîëóîñòðîâå â 75 êì îò Àíòàëüè…
Îòåëè ãîðîäà Ñèäå…
Ãîà íàõîäèòñÿ íà çàïàäå Èíäèè…
Ìóçûêà, òàíöû, ïðèêëàäíîå è óñòíîå òâîð÷åñòâî ãëóáîêèìè êîðíÿìè óõîäÿò â äóøó Ãîà, à ðèòìû ïóëüñèðóþò â ñåðäöàõ åãî æèòåëåé…
Êëàññèôèêàöèÿ è íàçíà÷åíèå êàáåëåé…
Ýëåêòðîêàáåëè…
Îòåëè Àëàíèè…
Êóðîðòû Òóðöèè…
Ïèëîðàìû…
Áð¸âíîïèëüíûå äèñêîâûå ñòàíêè…
Ïàðèæ - ñòîëèöà Ôðàíöèè…
Ïðîâåäèòå îòïóñê âî Ôðàíöèè…
Îáùàÿ èíôîðìàöèÿ î Òóíèñå…
Äîñòîïðèìå÷àòåëüíîñòè Òóíèñà…
Êëàññèôèêàöèÿ ñòàíêîâ è îáîðóäîâàíèÿ ïî ìåòàëëó…
Ìåòàëëîðåæóùèé ñòàíîê…
Ïóòåøåñòâèå â Òàéëàíä…
Âåëèêîëåïíûé îòäûõ â Òàéëàíäå…
Yahoo News…
This is really good news today….
…
Yes, thank for the data a million! Have to find anyone organizing Tea Party. I would like to participate in organizing….
…
Thanks! it’s helpful to me!…
…
Quite cool! I assist your view!…
…
Yes, thank for the details a million! Ought to find anybody organizing Tea Party. I would like to participate in organizing….
…
Positive glad that I navigated in your page by accident. I’ll be subscribing for your feed in order that I can get the newest updates. Appreciate all of the facts below…
…
I admire the beneficial information you provide with your articles. I will bookmark your blog and have my children verify up below frequently. I’m really sure they will discover lots of new things below than anybody else!…
…
thanks for sharing the data…..
…
Very inspiring submit, Thank you !?!…
…
Okay content. I simply discovered your weblog and wished to say I’ve really liked reading through your ideas. By any suggests I’ll be subscribing to your feed and I genuinely hope you write-up yet again quickly….
…
Thanks for the well-thought content. I’m really at work appropriate now! So I ought to go off without having reading through all I’d like. But, I place your web site on my RSS feed to ensure I can understand far more….
…
Very inspiring publish, Thanks !?!…
Another Title…
I saw this really great post today….
…
XWL I saw this truly wonderful post today! -PR….
…
HHS This blog site is great. How did you appear up witht he idea? -DO….
…
JQU I would like to thank you with the endeavors you have created in publishing this post. I am trusting the same very best perform from you inside the future too. Actually your fanciful writing abilities has inspired me to start my own blog site now. …
Hello…
Nice share. I belive your blog should come up much higher in the search results than where it is showing up right now….
…
Your stage is valueble for me. Thanks!…
…
I admire the useful facts you provide inside your articles. I will bookmark your website and have my children check up below typically. I’m very positive they will learn lots of new things right here than anybody else!…
Pretty good post…
I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. …
Hello…
Nice share. I think your page should come up much higher in the search results than where it is showing up right now….
Hello…
Nice writing. I belive your website should come up much higher in the search results than where it is showing up right now….
Hello…
Nice share. I think your blog should come up much higher in the search results than where it is showing up right now….
valuable post…
You got a really useful blog I have been here reading for about half an hour. I am a newbie and your post is valuable for me….
…
Many thanks for the great write-up. I’ll take the notes you have written….
…
An additional new write-up with powerful points, I’ve been a lurker right here for a brief time but desire to be a lot more engaged from the long term….
…
Good weblog, thanks a good deal to the awesome posts!…
valuable post…
You got a really great blog I have been here reading for about half an hour. I am a newbie and your post is valuable for me….
…
Cheers for this article, guys, retain up the excellent perform….
…
Ok. I think you are proper!…
…
Real interesting….
…
Curious to see what all you intellectuals need to say about this……….
Good! Thank you! I always wanted to write in my site something like that. Can I take part of your post to my blog?…
Hello, this is my first time i visit here. I found so many interesting in your blog especially on how to determine the topic. keep up the good work….
…
I saw this really good post today….
Very nice!…
Wow you are very very talented!! keep up the awesome work. You are very talented & I only wish I could write as good as you do :)…