Figures from the Office for National Statistics (ONS) discovered GDP fell 5.eight p.c in March, companies slumped by 6.2 p.c and building was hit by 5.9 p.c – document month-to-month falls, whereas manufacturing additionally slumped 4.6 p.c because the coronavirus companies its grip on the UK economic system.
The first quarter fall was the worst for the reason that finish of 2008 on the peak of the monetary disaster, whereas the March month-to-month plunge marked a document tumble.
GDP fell by 2.zero p.c within the three months to March 2020, following no progress within the three months to February, signalling the primary direct impacts of the COVID-19 disaster on the economic system.
Reacting to the figures, transport minister Grant Shapps stated everybody would have anticipated a blow to the economic system earlier than warning there was extra to return.
He pledged that it was clear the UK wouldn’t return to a interval of austerity to pay for the financial measures taken through the pandemic.
Jonathan Athow, Deputy National Statistician for Economic Statistics, stated: “With the arrival of the pandemic almost each side of the economic system was hit in March, dragging progress to a document month-to-month fall.
“Services and building noticed document declines on the month with training, automotive gross sales and eating places all falling considerably.
“Although only a few industries noticed progress, there have been some that did together with IT help and the manufacture of prescribed drugs, soaps and cleansing merchandise.
“The pandemic additionally hit commerce globally, with UK imports and exports falling over the past couple of months, together with a notable drop in imports from China.”
Figures for April are prone to present an excellent larger fall as a result of your entire month was spent below lockdown by British firms and shoppers.
Last week, the Bank of England stated Britain’s economic system could possibly be heading for its sharpest annual droop in GDP in additional than 300 years, saying a 14 p.c fall was potential, adopted probably by a 15 p.c rise in 2021.
The ONS stated output in Britain’s big companies sector fell by a document 1.9 p.c within the first quarter and there have been additionally important contractions in manufacturing and building.