UK is one quarter away from recession

Britain is one quarter away from a technical recession, Schroders has observed, following the startling 0.5% drop in GDP in the fourth quarter.

Azad Zangana, a European economist at Schroders, says the GDP data is “a disappointing set of numbers and should dash any threat of a rise in interest rates in the near future”.

Zangana describes the output drop as a “severe slowdown” partly exacerbated by Britain’s bad weather in December.