• 209 days Could Crypto Overtake Traditional Investment?
  • 214 days Americans Still Quitting Jobs At Record Pace
  • 216 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 219 days Is The Dollar Too Strong?
  • 219 days Big Tech Disappoints Investors on Earnings Calls
  • 220 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 222 days China Is Quietly Trying To Distance Itself From Russia
  • 222 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 226 days Crypto Investors Won Big In 2021
  • 226 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 227 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 229 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 230 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 233 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 234 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 234 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 236 days Are NFTs About To Take Over Gaming?
  • 237 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 240 days What’s Causing Inflation In The United States?
  • 241 days Intel Joins Russian Exodus as Chip Shortage Digs In
What’s Causing Inflation In The United States?

What’s Causing Inflation In The United States?

he United States is currently…

Americans Still Quitting Jobs At Record Pace

Americans Still Quitting Jobs At Record Pace

Job openings and the level…

  1. Home
  2. Markets
  3. Economy

UK Economy Shrinks As Brexit Worries Grow

UK

Though it wasn't entirely unexpected, the UK economy contracted in Q2 for the first time in seven years as the cloud of uncertainty brought on by the kingdom's looming exit from the European Union discouraged business investment and prompted some consumers to put off major purchases as well.

For the three months ended June, GDP contracted 0.2% compared to the previous quarter, according to the Office for National Statistics. That's lower than what experts had expected (they had forecast growth to be flat). The biggest drag was a drop in manufacturing output, which caused the production sector to shrink by 1.4%. Construction also weakened while critical service sector yielded no growth at all.

The contraction marks the first time the UK economy has shrunk since 2012.

The contraction comes amid rising fears that Britain could crash out of the European Union on Oct. 31 without a deal as negotiations with the EU remain at an impasse. Prime Minister Boris Johnson has committed to leaving on Oct 31. with or without a deal, causing the pound to weaken dramatically.

The UK's Office of Budget Responsibility has warned that a 'no deal' Brexit could cause GDP to contract by 2% by the end of 2020.

However the outlook wasn't all bad: Capital Economics sees GDP rebounding next quarter, and thereby avoiding a recession (defined as two quarters of contraction). And with many of the car factories that shut down around the original Brexit deadline expected to soon be starting up again, that could deliver a boost to growth.

Unsurprisingly, the pound has continued its slide on the news.

By Zerohedge.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment