UK in recession for first time in 11 years

[Still Waters]

The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession.

The economy shrank 20.4% compared with the first three months of the year.

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

This pushed the UK into its first technical recession - defined as two consecutive quarters of economic decline - since 2009.

Chancellor Rishi Sunak told the BBC that the government was "grappling with something that is unprecedented" and that it was "a very difficult and uncertain time".

https://www.bbc.co.uk/news/business-53748278

[stevewinn]

well duh, a recession of our choosing.

[Setton]

Well, yeah.

And as a result, 150,000 people are still alive to keep spending their money and paying their taxes for the rest of their lives.

[Duke Wellington]

Gold price has had a bit of a collapse today.

That could be a sign that the world economy has woken from its coronavirus nap or that economic results for Q2 are due out from some major economies and arent as bad as expected.

[stevewinn]

yet the full picture.

• - 20.0% in April 2020
• + 2.4% in May 2020
• + 8.7% in June 2020
• Source: Office for National Statistics (ONS). Note: July data not yet published.

 

[Duke Wellington]

2 hours ago, stevewinn said:

yet the full picture.

• - 20.0% in April 2020
• + 2.4% in May 2020
• + 8.7% in June 2020
• Source: Office for National Statistics (ONS). Note: July data not yet published.

 

Ah yes, the data for June is already out and you have beaten me too it.

We are out of recession as are a lot of other countries in June. There has been a good jump in inflation and it triggered a price fall in gold yesterday. Thats a very good sign. Inflation going up means the economy started to heat back up and gold always drops when that happens.

I dont think we will get all the 20.0% back in Q3 as we still have lockdowns going on around the UK and in other countries. Its going to come back Q4 and Q1 in 2021. The moment markets start to recapitalise share prices are going to rocket.

I await the US stock market rally which will have started come the November elections. They are going to look stunning.