Q2 GDP In Record QQ Contraction

Q2 GDP: -20.4% q/q, -21.7% y/y; Prev (Q1): -2.2% q/q, -1.7% y/y;

Q2 BUSINESS INV -31.4% Q/Q, -31.3%Y/Y; Q1 -0.3% QQ, +0.7%YY

Q2 CONSUMER SPENDING -23.1% Q/Q, -25.2% Y/Y

Q2 GOVT SPENDING -14.0% Q/Q, -16.9% Y/Y

The pandemic took its toll leading to a record slump for the UK economy, contracting 20.4% in Q2, after falling 2.2% in the first quarter of 2020. M/M GDP on the other hand ticked up by 8.7%, however, compared to Feb GDP is still down by 17.2% in June. All Q2 quarterly drops mark record declines with household consumption showing the largest negative contribution to GDP, shaving off 14.3pp from growth. Gov spending slumped 14.0% during the crisis, while business investment plunged 31.4% in Q2. Exports fell by 11.3% in Q2, while imports plummeted by 23.4%, leading to a positive contribution to growth from net trade by 3.59pp. Quarterly service output declined by 19.9%, while industrial production dropped 16.9%.