Monday, September 21, 2020

UK falls into recession as GDP shrinks more than 20%

The latest figures measuring the UK’s economic activity released by the Office for National Statistics (ONS) today confirmed the country is officially in a recession.

They showed the national gross domestic product (GDP) shrank by 20.4% between April and June.

As it followed another 2.2% fall in output in the first quarter, this pushed Britain into its first technical recession – defined as two straight quarters of economic decline – since 2009.

“The UK suffered an historic contraction in economic activity in the second quarter as the coronavirus closed large parts of the economy. The dominant services sector suffered particularly badly in the quarter, with consumer-focused firms hit hardest by the pandemic,” said Suren Thiru, Head of Economics at the British Chambers of Commerce.

“While there was a pick-up in activity through the quarter from the historically weak April outturn, this is more likely to reflect the release of pent-up demand as the economy gradually opened, rather than an indication of a sustained revival.

“With restrictions steadily easing, the second quarter is likely to prove to be the low point for the UK economy. However, the prospect of a swift ‘V-shaped’ recovery remains remote as the recent gains in output may fade over the coming months as the economic damage caused by the pandemic increasingly weighs on activity, particularly as the government support measures wind down.

“Against this backdrop, bold action is needed to immediately inject confidence back into the UK economy. This should include supporting businesses to retain staff through a cut in employer national insurance contributions and targeted support to help businesses placed under local lockdowns.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

York hotel plan gets go-ahead

A new hotel is to be built on Micklegate in York, after planning approval was granted by just one vote. The 62 bedroom hotel, with...

Hull’s Whitefriargate secures £1.75m grant from Historic England

Whitefriargate in Hull has received a grant of £1.75m from Historic England. Hull City Council was informed earlier this year that its funding bid, for...

Facelift planned for prominent Sheffield building

A planning application proposing a significant facelift to Sheffield's Gaumont building, located on the junction between Barker’s Pool and Burgess Street in the city...

Pandemic sees major slide in recruitment plans as firms play it safe

Almost half of firms in the UK plan to reduce recruitment or not recruit at all over the next year, according to an annual...

The times they are a-changing

Bob Dylan’s immortal words couldn’t be more accurate in this day and age as many of us are having to learn new skills and...

NPIF cash for Sheffield smart sensor company

Sheffield tech company, Tribosonics, has raised £1.1 million to develop and grow its smart sensors which helps industry reduce costs. The company embeds sensors within...

Related news

York hotel plan gets go-ahead

A new hotel is to be built on Micklegate in York, after planning approval was granted by just one vote. The 62 bedroom hotel, with...

Hull’s Whitefriargate secures £1.75m grant from Historic England

Whitefriargate in Hull has received a grant of £1.75m from Historic England. Hull City Council was informed earlier this year that its funding bid, for...

Facelift planned for prominent Sheffield building

A planning application proposing a significant facelift to Sheffield's Gaumont building, located on the junction between Barker’s Pool and Burgess Street in the city...

Pandemic sees major slide in recruitment plans as firms play it safe

Almost half of firms in the UK plan to reduce recruitment or not recruit at all over the next year, according to an annual...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close