Research Briefing | May 13, 2022
March’s fall in GDP reinforces fears of a poor Q2 in the UK
Although GDP rose 0.8% in Q1, the monthly numbers showed that growth was concentrated entirely in the first month of the quarter. Output stagnated in February and fell slightly in March, meaning activity had lost momentum even before the full weight of cost of living pressures hit.
What you will learn:
- It’s looking more likely that the government will announce extra fiscal support to the economy, probably this summer.
- But nearer-term, the end of free Covid testing, the effect of the extra bank holiday in June, and the backdrop of a squeeze on real incomes all point to GDP falling in Q2.
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