UK Economy Contracts More Than Initially Estimated In First Quarter

The UK economy shrank more than initially estimated in the first quarter of this year, recording the largest fall since 1979 as coronavirus choked activity in March, with household savings soaring, the Financial Times reported. Output in the UK dropped 2.2 per cent in the first quarter compared to the previous three months, according to revised data from the Office for National Statistics. This is a sharper contraction than the first estimate of 2 per cent. The quarterly fall in UK gross domestic product is now the joint largest since the third quarter of 1979. “Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated”, said Jonathan Athow, deputy national statistician at the ONS. “All main sectors of the economy shrank significantly in March as the effects of the pandemic hit . . . The sharp fall in consumer spending at the end of March led to a notable increase in households’ savings.” Read more