Economy

United Kingdom economy declines for the first time since 2012

United Kingdom economy declines for the first time since 2012”

The decline is set to raise alarm that Brexit uncertainty is increasingly weighing on the economy.

The data, which was worse than market expectations for zero growth and also reflects global economic strains, sent the pound diving to $1.2056 - the lowest level since early 2017. Annual growth in June alone was the weakest since August 2013 at 1.0 percent. Most analysts expected the economy to flat-line.

According to the ONS, the volatility in the first half of 2019 largely reflected changes in the timing of activity related to the UK's original planned Brexit date in late-March.

Euro traders are increasingly concerned about the likelihood of a contraction in the Eurozone's economy in the second quarter.

"The trade deficit narrowed markedly, as imports fell following a sharp rise in the first quarter ahead of the original departure date from the European Union".

The technical definition of a recession is two consecutive quarters of negative economic growth.

The fact that the overall economy performed worse than anticipated is likely to increase concern about Brexit's corrosive effect on the economy. Business investment, which has been historically weak since the country voted in June 2016 to leave the European Union, weakened further in the second quarter, contracting by 0.5%. He also listed positive economic data, from the U.K.'s low unemployment rate and wage growth to predictions that the country will resume an economic expansion.

More news: Celtics The 2019-20 Boston Celtics schedule is announced

The contraction comes amid rising fears that Britain could crash out of the European Union on October 31 without a deal as negotiations with the EU remain at an impasse.

Many investors say a no-deal Brexit would tip Brexit into a recession, weaken London's position as an worldwide financial center and send shock waves through the world economy. Mr Tombs said the market now sees a 70% chance of an interest rate cut in January, when Mark Carney is due to leave as the Bank of England's governor.

The finance minister-in-waiting for the opposition Labour Party, John McDonnell, said: "The Tories' Brexit bungling, including Boris Johnson now taking us toward no-deal, is breaking the economy".

U.K. Chancellor of the Exchequer Sajid Javid, who has held the post since Johnson's election, dismissed fears of a recession and said he does not "at all" expect growth to decline for a second quarter.

But June manufacturing data was also unexpectedly poor and output for the quarter contracted at the fastest rate since early 2009, when Britain was mired in recession. And with all the talk of a no-deal Brexit again, firms could start to build up their stocks again. It's because the fundamentals are strong, that's the first thing. Johnson's predecessor May stepped down last month after failing to get her EU-divorce deal through parliament and being forced to delay Brexit twice.

"You could reasonably expect that it will carry on falling, potentially to parity with the dollar", he told Business Insider.



Like this

loading...
loading...

Latest


13 August 2019
Manchester United target spotted at Bayern Munich for medical ahead of transfer
He also helped Croatia to the 2018 World Cup final, which they lost to France. Bayern launch their Bundesliga season at home to Hertha Berlin on Friday.

13 August 2019
Sterling 'Considering £100m Offer' From Nike To Wear Air Jordan Boots
Jordan brand is a subsidiary of Nike and moved into football a year ago with the launch of a stunning " Jordan X PSG" range. The company entered the soccer market for the first time in 2018-19 by designing the kits for Paris Saint-Germain.

13 August 2019
Antonio Brown loses helmet grievance against the NFL
Brown is in a massive feud with the league over his favorite Schutt helmet . with the NFL barring the superstar wide out from wearing the headgear he's donned for the past decade.

13 August 2019
Former NBA Point Guard Sebastian Telfair Sentenced 3.5 Years for Gun Possession
In total, they found three loaded pistols, a gas-operated submachine gun, extended magazines, ammunition and the ballistic vest. She hasn't even gotten her period yet'.

13 August 2019
Nightdive Studios confirm System Shock 2 Enhanced Edition
Released back in 1999, System Shock 2 was a role-playing survival horror game developed by the former BioShock studio Irrational Games.

13 August 2019
Your phone can now verify you in Google Passwords
The new security and authentication method is based upon FIDO2 (Fast Identity Online 2) and WebAuthn protocol open standard. Not having to remember a password means this is a much more convenient way to log in, and it's also much more secure.

13 August 2019
America's number-one sneaker retailer jumps into the subscription business
You can choose from three tiers of subscription services, ranging from four pairs a year to 12 pairs a year. Nike says that the Adventure Club includes shoe sizes from 4C to 7Y, which is "roughly from age 2 to 10".

13 August 2019
Chick-fil-A launches first new side since 2016: Mac & Cheese
Though if you're looking for something a little more sweet than savory, Chick-fil-A is not done rolling out exciting new options. The drink combines cold-brewed coffee with vanilla Icedream dessert and caramel syrup and will be available until November 9.

13 August 2019
Taylor Swift wants to help close the gender pay gap
The 29-year-old was introduced to the stage by Alex Morgan , who won the World Cup with the USA women's football team last month. Amid loud cheers from the audience, the star then announced that she would be releasing her new song, " Lover ", on Friday.

13 August 2019
Severe storms expected in Midwest, Northeast as South heats up
Scattered storms will move across the foothills, Front Range and eastern Plains in the afternoon and evening. Another high pressure system is expected to follow the rain producing comfortable midweek weather.