UK BACK IN RECESSION: Q1 GDP Unexpectedly Falls 0.2%, Second Straight Quarter Of Contraction

City of London

Photo: Wikimedia

ORIGINAL POST, SEE UPDATE BELOW: Heads up: We’re about to get the first pass at UK Q1 GDP.The number comes out at 4:30 AM ET.

Analysts expect growth of 0.1%.

Q4 came in at a negative reading, so if this is a miss and goes negative that would be two straight quarters of a contracting economy, and thus what some would call a recession.

We’ll have the number here LIVE when it comes out.

UPDATE: It’s a big miss.

Q1 GDP fell 0.2% in the UK. That’s much worse than the 0.1% sequential growth that was expected.

That’s the second straight quarter of contraction meaning the UK is now technically in recession.

This will heighten pressure to do more QE.

Here’s a chart of the pound.

chart

And this from Sky nicely breaks down the most important moving parts.

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