UK one quarter of negative GDP away from recession

GDP contracted in Q2

UK gross domestic product (GDP) contracted in the second quarter for the first time since 2012, the Office for National Statistics said in its latest report, meaning the UK is only one negative quarter away from a recession.

The GDP monthly estimate for June, published today (9 August), shows that GDP shrunk by 0.2% in Q2 following the strong growth seen in Q1, largely due to a pull-back in manufacturing output, although the other two main sectors of the economy - services and construction - also suffered. The slowdown means the annual growth rate stands at 1.2% and was notably worse than the Bank of England's forecast in its quarterly inflation report. UK GDP growth hits highest level since 2016 Head of GDP Rob Kent-Smith said: "GDP contracted in the second quarter for the first time since 2012 after ...