The United Kingdom’s Gross Domestic Product fell by the most in twenty years in the first quarter of 2009 according to a report by the Office of National Statistics today. The U.K. GDP data showed that quarterly GDP fell by 1.9 percent in the January through 
March quarter following a decline of 1.6 percent in the fourth quarter of 2008. The 1.9 percent GDP decline marked the largest decrease in quarterly GDP since the third quarter of 1979 and matched the government’s previous 1st quarter estimate released last month.
On an annual basis, the first quarter GDP fell by 4.1 percent from the level of the first quarter of 2008 and marked the largest annual decline since 1980. The 2008 fourth quarter registered a decline of 2.0 percent.
Contributing to the contraction in GDP was a record decline in business inventories and a slowdown in consumer spending. Business inventories fell by the most on record since 1948 and amounted to a 0.6 percent decrease in the GDP for the quarter. Consumer spending, which was the lowest since 1980, fell by 1.2 percent in the first quarter and by an annual rate of 2.8 percent from the 1st quarter of 2008.
Total production output in the first quarter decreased by 5.3 percent after falling by 4.5 percent in the fourth quarter. Construction activity fell by 2.4 percent while manufacturing output declined by 5.5 percent. Total services output saw a decline by 1.2 percent in the first quarter after a 0.8 percent decline in the fourth quarter while exports fell by 6.1 percent and imports decreased by 5.9 percent.
Contributing positively to the GDP data was government spending which increased by 0.3 percent in the quarter and climbed by 3.5 percent on an annual basis from 2008.
GBP Pound Sterling mixed in FOREX Trading.
The pound sterling has been mixed in forex trading today against the other major currencies. The British currency is trading higher today versus the US dollar and Japanese yen while trading lower against the Swiss franc, euro and Canadian dollar.
The GBP/USD has advanced from the day’s opening exchange rate of 1.5854 at 00:00 GMT to trading at 1.5909 in the US session at 12:33pm according to currency data from Oanda. The pound is on its way to increasing versus the dollar today for the fifth straight day after paring early losses yesterday to finish higher.
The euro has increased versus the pound as the EUR/GBP trades at the 0.8809 exchange rate after opening the day at 0.8785. The euro is on its way to its second straight daily gains against the GBP.
The pound has increased versus the yen today as the GBP/JPY has advanced from the 149.32 opening rate to trading later at 150.33 exchange rate.
The pound is trading lower against the Swiss franc for the second day in a row as the GBP/CHF trades at 1.7252 after opening at 1.7291. The pound has also decreased today against the Canadian dollar as the GBP/CAD trades at 1.7876 after opening the day at the 1.7973 level.
GBP/USD Chart – The British Pound is trading higher today against the US Dollar in forex trading and is on its way to increasing versus the dollar today for the fifth straight day after paring early losses yesterday to finish higher.
