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UK falls into recession for the first time in over a decade

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An 11-year economic boom for the UK suffered its biggest slump between April and June 2020 as coronavirus lockdown measures pushed the country officially into recession.

UK’s economy shrank 20.4% compared with the first three months of 2020.

Household spending plunged as shops were ordered to close, while factory and construction output also fell.

The change forced UK into its first technical recession, defined as two straight quarters of economic decline since 2009.

However, the Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease.

Deputy national statistician for economic statistics, Jonathan Athow said: “Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck.”

The ONS said closure of shops, hotels, restaurants, schools and car repair shops caused the collapse in output.

The services sector which powers four-fifths of the economy suffered the biggest quarterly decline on record.

This is also as factory shutdowns resulted in the slowest car production since 1954.

The economic decline was concentrated in April but on the economy grew by 8.7% in June, building on growth in May.


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