UK economy shrinks in second quarter

Some analysis:

They also contain the post no deal shutdowns of car factories around the first Brexit deadline in March.

Due to shutdowns from the first deadline, without that, no shrinkage

But there are some real and enduring weaknesses in this number too, some of which is down to poor levels of investment, and some down to poor global growth.

The economy grew +0.5% in Q1 so the UK is still growing +0.3% this year.


The data comes at a time when there are signs other economies are slowing. For instance, data on Friday showed that French industrial output also fell more than expected in June.

Chancellor Sajid Javid said: "This is a challenging period across the global economy, with growth slowing in many countries.

"But the fundamentals of the British economy are strong - wages are growing, employment is at a record high and we're forecast to grow faster than Germany, Italy and Japan this year."

multiple nations have also contracted in the last two years:

Denmark (-1.2 & -1.0) Germany (-0.2) Greece (-0.1) Iceland (-1.1) Ireland (-0.1) Italy (-0.1) Japan (-0.1) S.Korea (-0.4) Latvia (-0.1) Mexico (-0.4 & -0.3) Norway (-0.1) Sweden (-0.1) Switzerland (-0.2) Turkey (-2.5 & -1.5) Russia (-0.6) Saudi Arabia (-0.3)

A single Quarter of .2 is nothing to worry about when Q1 was .5

/r/worldnews Thread Parent Link -