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09 August 2019

Recession fears intensify as UK economy shrinks in second quarter

For the first time in almost seven years, the UK economy has shrunk according to the Office for National Statistics, with output falling by 0.2% in the three months to June.

Saul Fulda, Investment Analyst at Redmayne Bentley, said: “The deteriorating global growth, largely due to the intensifying trade relations between the US and China, alongside the continuing uncertainties surrounding Brexit, fused to drive down British GDP.

“The growing service sector was unable to counterbalance the falling manufacturing output, a pan-European trend, while the new Prime Minister now has another problem on his hands. The news sent Sterling down 0.4% against the US Dollar and 0.3% against the Euro, while shocking economists, who were predicting the UK economy to remain constant with 0% growth.  

“The British Chancellor Sajid Javid was keen to stress the UK’s economic resilience, saying wages are growing, employment is at a record high and the UK is forecast to grow faster than Germany, Italy and Japan this year. However, despite his sunny optimism, fears around a British recession are intensifying.”

Ends

Notes to Editors

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Recession fears intensify as UK economy shrinks in second quarter

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