January to March’s quarterly 2.4% decline in the UK economy has not been exceeded since the second quarter of 1958, when the economy shrank by 2.6%. Analysts had only expected a 2.1% fall this time. However, the decline was equalled by figures from the first quarter of 1974 and the third quarter of 1979, which also saw contractions of 2.4%.

Construction output decreased between January and March by 6.9%, while the service sector contracted by 1.6%, led by the banking and financial industries, which saw output slip 2.5%. Quarterly manufacturing output fell by 5.5%. Meanwhile, real household disposable income fell by 2.4%, while the savings rate dropped from 4% to 3%.

The best quarter in 10 years is now history, as investors quickly shift their focus to July. Stocks sold off Tuesday on a surprising dip in consumer sentiment, Treasury’s weakened and the dollar rose. Oil lost 2.2% to $69.89 per barrel, and other commodities also sold off. Corn was a standout, losing nearly 9% after a U.S. government crop report showed a high level of plantings. But for the quarter, most commodities show double digit gains.

UK and European markets have started the quarter in positive territory, and U.S. markets are currently pointing to a slightly positive opening when their markets open this afternoon.

Sources: Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times:

Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia:

Please note this report provides a guide to some of the relevant areas that individual investors should consider discussing with an authorised adviser in relation to their specific circumstances, it does not constitute individual advice. As a result no action should be taken or refrained from being taken as a result of its content.