The
British economy contracted 2.2 percent in first quarter this year, biggest
contraction since 1979, where the reading only captured the first impact of the
Covid-19 pandemic.

Analysts
had predicted no revision of 2 percent drop, following a stall in last quarter
of 2019.

From
a year earlier, the economy slumped 1.7 percent, revised downwardly from -1.6
percent, while the previous reading was 1.1 percent growth.

Services
output plunged by a record 2.3 percent in the January-March quarter, while
household spending also experienced a sharp fall.

“Households’
consumption spending decreased by £9.5 billion (negative 2.7%) in Quarter 1
2020, the largest quarterly fall in nominal household spending of this type
ever recorded
,” the ONS said.

At press time, the
GBPUSD traded lower for a third straight session at 1.2284, hovering near its
lowest level since May 28.

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