The UK gross domestic product is projected to contract by 1.6% in Q1 of 2021 compared to the estimate of 1.5% decrease.
- The GDP level stands at 8.8% lower than the pre-pandemic levels in the fourth quarter of 2019, but higher than the estimated GDP level of 8.7%.
- Contractions in production and services output occured, yet construction output grewcover the quarter.
- The largest contributors to the decline in GDP in the UK comes from education, retail and wholesale trade, accommodation and food services sectors, in reaction to the tightening COVID-19 restrictions.
- Government consumption level increased as the household consumption dropped as the government reintroduced some of the COVID-19 restrictions.
On the brighter side, the household saving ratio expanded to 19.9% in Q1 of 2021, the second highest record compared to 16.1% in Q4 of 2020.
FTSE 250 Index slips -0.74%, FTSE 350 Index drops -0.71%.
Source: Office for National Statistics.