UK Final GDP Revised To -19.8% Q/Q

Q2 GDP -19.8% Q/Q; -21.5% Y/Y, PRELIM -20.4% Q/Q, -21.7% Y/Y; Q1 -2.5% Q/Q

Q2 BUSINESS INV -26.5% Q/Q, -26.1%Y/Y; Q1 -0.5% QQ, +1.1%YY

Q2 CONSUMER SPENDING -23.6%% Q/Q, -26.2% Y/Y; Q1 -3.0% QQ, +2.9%YY

Q2 GOVT SPENDING -14.6% Q/Q, -17.8% Y/Y; Q1 -3.9% QQ, -1.8%YY

The final print of the UK's GDP was revised to -19.8% q/q in Q2 from the previously reported drop of 20.4%. The annual rate was revised up by 0.2pp to 21.5%. According to the ONS the economy shrank by about a fifth in the first half of the year, resulting in the largest contraction on record (began in 1955). Business investment saw a sharp upward revision in Q2 to -26.5% q/q from -31.4%. Consumer and gov. spending were revised down slightly, and household spending continues to show the largest negative contribution to growth, subtracting 14.4pp. Exports declined by 11% in Q2, while imports plunged by 22.7%, leading to a positive contribution to growth from net trade. The ONS also noted that household savings increased significantly in Q2 to 29.1%, up from 9.6% in Q1, as the Covid-19 restrictions hit spending on cars, public transport, shops and restaurants significantly. The service, production and construction sector saw the largest quarterly declines on record, as these sectors have been most exposed to gov. restrictions.