UK First-Quarter GDP Revised Slightly Lower to -1.6%

Source: Office for National Statistics

The United Kingdom’s economic performance for the first three months of 2021 was revised slightly lower, with lockdown restrictions reimposed during the month.

• The first-quarter gross domestic product (GDP) was revised to -1.6%, slightly lower than the earlier estimate of -1.5%. 
• The GDP level is now 8.8% lower than pre-pandemic levels. Nominal GDP declined by 0.2%. 
• The implied deflator grew by 1.4% versus the 4.8% growth in the same quarter last year. 
• Contractions were recorded in services and production output, coming mainly from education, wholesale and retail trade, and accommodation and food service industries.
• Household spending and gross capital formation likewise fell as COVID-19 restrictions were reimposed.
• The household saving ratio grew to 19.9% to hit the second-highest on record.
• Trade was dragged by the weaker performance of imports and exports of goods and services during the month.