UK economy shrank by 0.1% in March as cost of life crisis bites – business live
Good morning, and welcome to our rolling coverage of business, the world economy and financial markets.
A new health test on the UK today will show how the economy has slowed, as the cost of living crisis plagues families and threatens to drag the country into recession.
The GDP report for the first quarter of 2022, due at 7 am, is expected to show that the economy expanded at a healthy-sounding 1% in Q1, down from 1.3% in the last quarter of 2021.
But much of that increase came in January, as activity accelerated strongly after Omicron’s disruption in December.
Growth slowed to just 0.1% in February, and some economists fear it could stall in March, with 0% growth forecast in March alone.
Note: GDP MoM (MAR) due at 06:00 GMT (15 min)
Expected: 0%
Previous: 0.1%https://t.co/nI7dNepgqL
— DailyFX Team Live (@DailyFXTeam)
Michael hewson Of CMC Market telling:
The services index is expected to make up most of the expansion coming in at 0.9%, although if the Bank of England is to be believed, the quarter could be as good as it gets for the UK economy this year. Business investment is also expected to improve from 1% to 1.9% in Q4.
On monthly GDP figures, we have seen an expansion of 0.8% in January and 0.1% in February. March may well see a contraction, although estimates are for a standstill at 0%, which is still likely to drag down the quarterly numbers.
still coming today
European markets are set to fall nearly 1%, erasing Wednesday’s rally, as fears of inflation and rising interest rates continue to weigh on stocks.
(viewer discretion is advised)
European Opening Call: 7258 -1.22% 13635 -1.40% 6166 -1.65% 669 -2.07% 23344 -1.60% 8204 -1.30% 1953 -1.24% 11420 -1.16% 3579 -1.88%
— IGSquawk (@IGSquawk)
Wall Street had another turbulent session yesterday that ended lower, with technology stocks continuing to fall.
Higher-than-expected US inflation dampened hopes that the US Federal Reserve could achieve a ‘soft landing’ as it raises interest rates, with the CPI falling to just 8.3% in April.
hebe Chain Of IYes telling:
Inflation in the United States grew at a slower rate in April, but impatient traders weren’t happy with the pace.
The US CPI print that surfaced last night was still stronger than forecast at 8.3% versus 8/2% (y/y), suggesting that price pressure will remain higher for a longer period of time, even if it be at its peak already.
Australian stock market is trading at intraday low 103 points or 1.5% down at 6960. The index is down ~8.7% from its April peak. The market is under pressure due to rising inflation, high interest rates and lockdown in China.
— ComSec (@CommSec)
That sell-off has seen Apple lose its title as the world’s most valuable company to energy giant Saudi Aramco, boosted by higher oil prices.
On the corporate front, bt, Rolls-Royce, balfour betty And very dry Showing results.
work schedule
- 7am BST: UK GDP and business report for Q1 2022, and March
- 9am BST: IEA Monthly Oil Market Report
- 9.30am BST: ONS’s latest Economic Activity Survey
- 1.30pm BST: US PPI Survey of Producer Price Inflation
- 1.30 a.m. BST: US weekly jobless claims report
