UK GDP fell 1.6% through March, more than expected

With this data, the UK economy 8.8% is still below from the level it was in the last quarter of 2019, before the outbreak of the pandemic.

The The service sector activity was the hardest hit In this period, down by 2.1%, while the industrial sector contracted by 0.5%. On the contrary, the construction sector grew by 2.3% in the first three months of the year.

Because of the epidemic, the home consumption During the quarter, it recorded a decline of 4.6%, and spending on restaurants and hotels decreased by 42.2%.

“The updated GDP numbers show the same picture as our previous estimate with schools, hospitality and retail, all affected by the reimposition of the blockade in January and February, with some recovery in March. “With not many services available, families were again able to save at record levels and only last spring saw more savings,” they noted from the Office for National Statistics.

However, they note that “a small downward revision to first-quarter GDP growth likely won’t preventThe economy will return to its pre-pandemic peak in the coming months. Also, a significant rise in the household saving rate increases the potential for faster GDP growth later on.”