NIESR: The UK will lose 1/4 output in Q2

<p>The National Institute of Economic and Social Research said Britain will lose 1/4 of its output in Q2. GDP is expected to fall by -20% to -25% in Q2, a significantly steeper decline than Q1, reflecting the full impact of the lockdown policy.</p>
<p>The decline in income is not balanced with spending during the pandemic and lockdown, because of the collapse and closure of business activities to reduce transmission of the virus. The UK is expected to lose around a quarter of GDP due to the lockdown. The latest ONS forecasts represent a record monthly decline in UK GDP, where almost all sectors experienced a decline.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/06/ons.jpg"><img class="alignnone size-medium wp-image-141427" src="https://analysis.hotforex.com/wp-content/uploads/2020/06/ons-300×190.jpg" alt="" width="300" height="190" srcset="/wp-content/uploads/2020/06/ons-300×190.jpg 300w, /wp-content/uploads/2020/06/ons-696×442.jpg 696w, /wp-content/uploads/2020/06/ons-661×420.jpg 661w, /wp-content/uploads/2020/06/ons.jpg 715w" sizes="(max-width: 300px) 100vw, 300px" /></a></p>
<p>Source: Monthly GDP Tracker – UK Set to Lose a Quarter of Output in Q2</p>
<p>The latest survey shows a decrease in the rate of contraction in the manufacturing and service sectors, and the economy seems to have reached a low point. The reopening of June 15, coupled with ongoing support from the government, will help a gradual, albeit limited, recovery in domestic activities.</p>
<p><strong>Cable</strong> declined to S1 at <span><strong>1.2456</strong></span> this morning before recovering <span><strong>1.2500</strong></span> to trade at 1.2525 currently. The daily pivot and upper Bollinger band sits at <span><strong>1.2555</strong></span> and the 200-hr moving average and R1 are at <span><strong>1.2625</strong></span>.</p>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong>  to access the HotForex Economic Calendar</strong></p>
<p><strong>Ady Phangestu<br />
</strong></p>
<p><strong>HFI Indonesia Market Analyst<br />
</strong></p>
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