Mexican Media Brands
U.K.’s Economy Shrank in Second Quarter
The British economy contracted by 0.2% in April-June, its first quarterly retreat since and identical decline the fourth quarter of 2012.
#economics
Share
The British economy contracted by 0.2% in April-June, its first quarterly retreat since and identical decline the fourth quarter of 2012.
Analysts say the shrinkage was driven by auto industry production cuts, slumping construction activity and the effect of businesses draining the stockpiles they had amassed ahead of the U.K.’s originally scheduled March 29 exit from the European Union. Brexit is now expected at the end of October.
Economists had predicted zero growth in the second quarter after the U.K.’s gross domestic product expanded 0.5% in January-March. The Office of National Statistics notes that its GDP calculations have been unusually volatile this year because of preemptive Brexit activities.
News of the second-quarter economic contraction caused the pound sterling to slide to a 31-month low against the U.S. dollar and a two-year low against the EU euro, BBC News says.
Earlier this month, the Bank of England lowered its forecast for full-year economic growth to 1.3% from 1.5%. British Chancellor Sajid Javid insists that the U.K. is not headed for recession, which is defined as two or more consecutive quarters of negative growth.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.