UK economy dives by more than 20% in April

UK GDP Contracted by A Whopping 20% in April

Posted Friday, June 12, 2020 by
Skerdian Meta • 1 min read

The UK economy was already pretty weak last year, as the global economy weakened considerably, partly due to the trade war between US and China and party because major central banks had been tightening the monetary policy pretty fast since 2016, removing much needed liquidity from markets. Now they are throwing all they have back at the economy, but it is not helping it, as the coronavirus lock-down has put te economy in a very difficult position for many countries. The UK economy contracted by  5.8% in March, while in April it dived by a massive 20.4%.

GDP Report Released by ONS – 12 June 2020

  • April monthly GDP MoM -20.4% vs -18.7% expected
  • March GDP MoM -5.8%
  • Monthly GDP 3M/3M -10.4% vs -10.0% expected
  • March GDP 3M/3M -0.1%
Slight delay in the release by the source. Those are some awful figures and it goes without saying that the plunge in economic conditions during April is the worst that the UK has encountered in history. ONS notes that virtually all sectors of the UK economy were hit as a result of lock-down measures and also the overall fallout from the coronavirus outbreak.
There’s also factory activity data released at the same time are as per below:
  • Manufacturing production April -24.3% vs -15.6% expected
  • March manufacturing production -4.6%
  • Manufacturing production YoY -28.5% vs -19.9%  y/y expected
  • Prior manufacturing production YoY -9.7%
  • Industrial production April -20.3% vs -15.0% expected
  • March industrial production -4.2%
  • Industrial production YoY -24.4% vs -19.3% expected
  • Prior industrial production YoY -8.2%
  • Construction output April -40.1% vs -25.0% expected
  • Prior -5.9%
  • Construction output YoY -44.0% vs -31.3% expected
  • Prior construction output YoY -7.1%


Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments