RTTNews - Friday, the Office for National Statistics said U.K. GDP fell 1.9% in the first quarter compared with the prior quarter, unrevised from previous estimate released on April 24. This was the largest decline since the third quarter of 1979. In the fourth quarter of 2008, the economy had contracted 1.6%.

Year-on-year, GDP was down 4.1%, much larger than the 2% decline seen in the fourth quarter. The statistical office confirmed the number for the first quarter.

On the expenditure front, household spending dipped 1.2%, which is the largest fall since the fourth quarter of 1980. By contrast, government expenditure grew 0.3%. Gross fixed capital formation dropped 3.8% versus a 1.4% fall in the previous quarter.

The level of inventories, including the alignment adjustment, fell GBP 6 billion in the latest quarter. At the same time, the deficit in net trade decreased to GBP 7.3 billion from GBP 7.6 billion in fourth quarter, as imports fell by a greater amount than exports.

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