It was announced this week that the UK economy has suffered its largest slump on record between the months of April and June due to the coronavirus lockdown measures, which has officially pushed the country into it first ‘technical recession’ (two consecutive quarters of economic decline) since 2009. The economy shrank 20.4% compared with the first three months of the year with household spending plunging as shops were ordered to close, while factory and construction output also fell.
The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease. On a month-on-month basis, the economy grew by 8.7% in June, after growth of 1.8% in May. The housing market was given a boost with the Chancellor’s stamp duty changes, with many estate agents reporting their busiest months ever since being allowed to re-open.
We continue to watch the markets and economy together with developments around lockdown measures easing and schools re-opening.
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