Friday, August 22, 2008
Economy stagnated in the second quarter
Posted by David Smith at 09:40 AM
Category: Thoughts and responses

Barring further data revisions, which are always possible, the long expansion of the UK economy came to an end in the second quarter. Revised figures showed that the initially reported 0.2% rise in gross domestic product in the April-June quarter has now been marked down to zero. Thus, after 63 continuous quarters of economic growth, Britain ground to a halt in the second quarter. GDP was up by just 1.4% on a year earlier. Avoiding negative quarters for the remainder of this year now looks like an even bigger challenge.

The Office for National Statistics estimates that household spending fell by 0.1% during the quarter, while capital expenditure dropped by 5.3%. Manufacturing and construction were very weak, services barely grew. Further details here.