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UK officially in recession for first time in 11 years | UK officially in recession for first time in 11 years |
(32 minutes later) | |
The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession. | The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession. |
The economy shrank 20.4% compared with the first three months of the year. | The economy shrank 20.4% compared with the first three months of the year. |
Household spending plunged as shops were ordered to close, while factory and construction output also fell. | Household spending plunged as shops were ordered to close, while factory and construction output also fell. |
This pushed the UK into its first technical recession - defined as two straight quarters of economic decline - since 2009. | This pushed the UK into its first technical recession - defined as two straight quarters of economic decline - since 2009. |
The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease. | The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease. |
Jonathan Athow, deputy national statistician for economic statistics, said: "Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck." | |
The ONS said the collapse in output was driven by the closure of shops, hotels, restaurants, schools and car repair shops. | |
The services sector, which powers four-fifths of the economy, suffered the biggest quarterly decline on record. | |
The hospitality sector was also hard hit, while factory shutdowns resulted in the slowest car production since 1954. | |
Rishi Sunak, the UK's chancellor, said the economic slump would lead to more job losses in the coming months. | |
He said: "Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will. | |
"But while there are difficult choices to be made ahead, we will get through this, and I can assure people that nobody will be left without hope or opportunity." |