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| Coronavirus: UK economy hit worse than first thought | |
| (32 minutes later) | |
| The UK economy shrank more than first thought between January and March, contracting 2.2% in the joint largest fall since 1979, official figures show. | The UK economy shrank more than first thought between January and March, contracting 2.2% in the joint largest fall since 1979, official figures show. |
| The Office for National Statistics (ONS) revised down its previous estimate of a 2% contraction, with all the main economic sectors dropping. | The Office for National Statistics (ONS) revised down its previous estimate of a 2% contraction, with all the main economic sectors dropping. |
| There was a significant economic impact in March, as the coronavirus pandemic began to have an effect. | There was a significant economic impact in March, as the coronavirus pandemic began to have an effect. |
| The data comes as the prime minister is set for a major speech on the economy. | The data comes as the prime minister is set for a major speech on the economy. |
| Jonathan Athow, deputy national statistician at the ONS, said: "Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated. | Jonathan Athow, deputy national statistician at the ONS, said: "Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated. |
| "Information from government showed health activities declined more than we previously showed. | "Information from government showed health activities declined more than we previously showed. |
| "All main sectors of the economy shrank significantly in March as the effects of the pandemic hit." | "All main sectors of the economy shrank significantly in March as the effects of the pandemic hit." |
| The first-quarter contraction is now the joint biggest drop since the July-to-September period in 1979. | The first-quarter contraction is now the joint biggest drop since the July-to-September period in 1979. |
| Mr Athow said: "The sharp fall in consumer spending at the end of March led to a notable increase in households' savings." | Mr Athow said: "The sharp fall in consumer spending at the end of March led to a notable increase in households' savings." |
| When compared with the same three-month period a year ago, the economy shrank by 1.7%, worse than the previous estimate of a 1.6% contraction. | When compared with the same three-month period a year ago, the economy shrank by 1.7%, worse than the previous estimate of a 1.6% contraction. |
| But with the coronavirus lockdown only coming into force on 23 March, the second quarter will show the full hit on the economy. | But with the coronavirus lockdown only coming into force on 23 March, the second quarter will show the full hit on the economy. |
| Recent ONS monthly figures showed the economy plummeted by 20.4% in April - the largest drop in a single month since records began. | Recent ONS monthly figures showed the economy plummeted by 20.4% in April - the largest drop in a single month since records began. |
| That contraction was three times greater than the decline seen during the whole of the 2008 to 2009 economic downturn. | That contraction was three times greater than the decline seen during the whole of the 2008 to 2009 economic downturn. |
| Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the latest figures could be summed up in one line: "The biggest contraction for 40 years, even though Q1 contained just nine lockdown days." | Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the latest figures could be summed up in one line: "The biggest contraction for 40 years, even though Q1 contained just nine lockdown days." |
| The data "was just the prelude" to the worse to come, he added. | The data "was just the prelude" to the worse to come, he added. |
| Later on Tuesday, Boris Johnson is set to make a keynote speech on the economy with a promise to "build back better". | Later on Tuesday, Boris Johnson is set to make a keynote speech on the economy with a promise to "build back better". |
| Speaking in the West Midlands, the prime minister will say he wants to use the coronavirus crisis "to tackle this country's great unresolved challenges". | Speaking in the West Midlands, the prime minister will say he wants to use the coronavirus crisis "to tackle this country's great unresolved challenges". |
| As part of what he is expected to call a "new deal", Mr Johnson will set out plans to accelerate £5bn of spending on infrastructure projects. | As part of what he is expected to call a "new deal", Mr Johnson will set out plans to accelerate £5bn of spending on infrastructure projects. |