Financial News: UK Confirms Q4 Recession

UK Confirms Q4 Recession

03/28/2024 - 09:07:00 (RTTNews)

(RTTNews) - Confirming a mild recession in the UK, official data showed that the economy contracted as initially estimated in the fourth quarter.

Gross domestic product fell by an unrevised 0.3 percent after a 0.1 percent drop in the third quarter, the Office for National Statistics said Thursday.

The UK economy grew only 0.1 percent in 2023, much weaker than the 4.3 percent expansion seen in 2022.

Excluding the year 2020, which was affected by the coronavirus pandemic, this was the weakest annual change in real GDP since the financial crisis in 2009, the ONS said.

Compared with the same quarter a year ago, real GDP declined 0.2 percent in the fourth quarter.

Data showed that there was a fall in the volume of net trade, gross capital formation, and household consumption in the fourth quarter, partially offset by an increase in government consumption.

Household spending fell 0.1 percent as estimated after declining 0.9 percent in the third quarter. Meanwhile, government spending grew 0.1 percent, which was revised from the initial estimate of 0.3 percent fall.

Growth in gross fixed capital formation was revised down to 0.9 percent from 1.4 percent. Within this, business investment moved up 1.4 percent, following a 2.8 percent drop in the preceding quarter. The trade deficit for goods and services was 1.1 percent of GDP in the fourth quarter, revised up from the first estimate deficit of 1.6 percent.

Capital Economics' economist Ashley Webb said timely indicators suggest the economy probably exited recession in the first quarter and the economic recovery is already underway.

The economist said the recession in the consumer sector may already be over and the recovery in consumer spending will soon start to gather pace.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Belgium GDP Growth Stable At 0.3% (49 min(s), 07 sec(s) ago)
(RTTNews) - Belgium's economy expanded at a steady rate in the first quarter of 2024, prelimin ...Full Story»

German Companies' Price Expectations Rise Slightly - Ifo (02 hr(s), 41 min(s), 07 sec(s) ago)
(RTTNews) - More companies in Germany plan to raise prices in April and inflation is likely to rem ...Full Story»

Finland Consumers More Gloomy In April, Business Morale Weakens (02 hr(s), 53 min(s), 07 sec(s) ago)
(RTTNews) - Finland's consumers expressed a more pessimistic approach in April, survey figures ...Full Story»

Spain Inflation Rises To 3.3%, Less Than Forecast (03 hr(s), 50 min(s), 07 sec(s) ago)
(RTTNews) - Spain's consumer price inflation rose less than expected in April to the highest l ...Full Story»

Swedish Economy Contracts Further (04 hr(s), 42 min(s), 07 sec(s) ago)
(RTTNews) - Sweden's economy shrank for the fourth consecutive quarter in the three months e ...Full Story»

Dutch Producers Less Pessimistic In April (05 hr(s), 43 min(s), 07 sec(s) ago)
(RTTNews) - Confidence among manufacturers in the Netherlands remained less negative in April, dat ...Full Story»

European Economic News Preview: Germany Inflation Data Due (08 hr(s), 13 min(s), 07 sec(s) ago)
(RTTNews) - Flash inflation data from Germany and economic confidence survey results from the euro ...Full Story»

Singapore Unemployment Data Due On Monday (52 min(s), 53 sec(s) ago)
(RTTNews) - Singapore will on Monday release Q1 figures for unemployment, highlighting a light day ...Full Story»