U.K GDP Declines by 0.4% in 2nd Quarter, Annually Declines by 0.5% - 27.9.2012

The U.K’s second quarter Gross Domestic Product declined by -0.4 per cent, less than a previous estimate decrease of -0.5 per cent according to the Office of National Statistics. The quarterly GDP remains in negative territory for the third quarter in a row. The annual GDP also indicates a decline of -0.5 per cent as it was anticipated. Furthermore, the Current Account deficit widened to £20.8 billion in the 2nd quarter compared to a revised £15.4 billion the first quarter. Economists were expecting the deficit to widen to £12.4 billion however the release was worse than expected and it is the largest on record. The British pound against the US dollar immediately dropped after the weaker than expected news from 1.6198 to 1.6165.