Skip navigation

Gloucestershire Business News

UK economy shrinks in second quarter

Before the figures get pulled into the Brexit saga and their meaning lost forever, let us tell you that the UK economy shrank in the last quarter.

According to reports the contract of 0.2 per cent between April and June surprised economists and was the worst performance since 2012.

The Office for National Statistics figures come after the UK enjoyed an economic boost in the first three months of the year of 0.5 per cent as firms stockpiled ahead of the Brexit deadline (March 31) - which the nation then sailed past.

Rob Kent-Smith, head of GDP at the ONS, said there had been a fall in manufacturing output and a weakening in the construction sector.

Apparently economists had not been forecasting a contraction in the second quarter, although there had been widespread agreement the word 'stagnation' would be the diagnosis.

Just to compound matters, today's news caused the pound to slide and that word - 'recession' - has entered the conversation.

"I'm not expecting recession at all. And in fact, don't take my word for it.

"There's not a single leading forecaster out there that is expecting a recession, the independent Bank of England is not expecting recession. And that's because they know that the fundamentals remain strong," said Sajid Javid, Chancellor of the Exchequer.

Related Articles

Warning: Part of Chetlenham's inner ring road will be closed for resurfacing work Image

Warning: Part of Chetlenham's inner ring road will be closed for resurfacing work

One of the main traffic routes through the town will be closed overnight for the whole of next week.

China trade trip reveals Scottish whisky business’s Gloucestershire headquarters Image

China trade trip reveals Scottish whisky business’s Gloucestershire headquarters

Fans of the water of life best sourced from the land north of our nation’s borders might be surprised to know than a business at the heart of the whisky trade is here in Gloucestershire.

Woman suffers life-threatening injuries in incident that caused A38 to be closed for 10 hours Image

Woman suffers life-threatening injuries in incident that caused A38 to be closed for 10 hours

A woman was taken to Southmead Hospital in Bristol with serious injuries after an overnight single vehicle collision on the A38 in Gloucestershire.

Former Prime Minister David Cameron leads Cheltenham Literature Festival line-up Image

Former Prime Minister David Cameron leads Cheltenham Literature Festival line-up

The former occupant of 10 Downing Street makes a rare public appearance at the 70th anniversary edition of the world's oldest Literature Festival.

Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.