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| Source: UK Office for National Statistics
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The UK economy suffered its sharpest decline in more than 50 years in the first quarter, suggesting the recession has been more severe than previously thought, the Office for National Statistics said Tuesday. Meanwhile, the Irish economy posted its worst annual performance on record.
UK gross domestic product (GDP) in volume terms fell by 2.4% compared with the previous quarter, revised down from last month's estimate of 1.9%. The level of GDP is now 4.9% lower than the first quarter of 2008 - - the largest since records began in 1948.
Between the fourth quarter of 2008 and first quarter of 2009: The total volume of output in the production industries fell by 5.1% - - including manufacturing output which fell by 5.5%.
Construction output fell by 6.9% over the quarter. The output of the service industries decreased by 1.6%.
The household saving ratio was 3.0% in the latest quarter compared with 4.0% in the previous quarter.
The Irish contraction is likely the worst since the 1922/23 civil war.
Irish GNP plunged at annual 12% rate in first quarter of 2009; Service exports fell; Ireland’s External Debt increased to €1.69 trillion
The Central Bank of Ireland said today that Irish residential mortgage lending was €18 million lower in May than the prior month - - the second consecutive month of decline. The annual growth rate was down to 2.6 per cent in May, an historic low. Mortgage debt outstanding has remained relatively flat since the beginning of 2009. The Bank said following a fall of over €100 million in April 2009, residential mortgages (including securitised mortgages) declined by €18 million in May. This trend of repayments exceeding new mortgage lending has not been evident at any stage prior to April since the series began in 1990, and reflects the continuing low levels of activity in the housing market. The annual growth rate of Private Sector Credit (PSC) adjusted to account for exchange-rate movements, slowed to 0.8 per cent in May, from a revised 1.6 per cent in April. This compares with an annual growth rate of 15.1 per cent in May 2008.
Central Bank says Irish residential mortgage lending at historic low in May; Annual growth rate of Private Sector Credit plunged to 0.8% compared with 15.1% in May 2008
The US Conference Board Consumer Confidence Index which had improved considerably in May, retreated in June. The Index now stands at 49.3 (1985=100), down from 54.8 in May. The Present Situation Index decreased to 24.8 from 29.7. The Expectations Index declined to 65.5 from 71.5 in May.
US Conference Board Consumer Confidence Index fell in June after months of strong gains
Data through April 2009, released today by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of US home prices, show that, although still negative, the annual decline of the 10-City and 20-City Composites improved. Annual prices in Phoenix are down 35%; Las Vegas 32% and San Francisco 28%.
S&P/Case-Shiller Home Price Indices for April 2009 have improved; Annual prices in Phoenix down 35%; Las Vegas 32%, San Francisco 28%
The Dow Jones Industrial Average dipped 120 points, or 1.4%, to 8,409. The S&P 500 declined 1.4% and the Nasdaq Composite Index slid 0.7%.
Live US Indices
European stocks fell Tuesday after the US consumer confidence report and the Dow Jones Stoxx 600 lost 1%.
The index is up 16% since March 31st - - the biggest quarterly advance since the final period of 1999.
Eurozone annual inflation turned negative in June for the first time on record
In Dublin, the ISEQ index fell 0.7%.
Elan fell 4.8% and Boundary Capital plunged 54% after it disclosed 2008 losses of €35 million and a need to restructure its €38 million loans from Anglo Irish Bank.
European Benchmarks
Irish Share Prices
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Oil
On the New York Mercantile Exchange, oil for August delivery is trading at $69.57 down $1.92 from Monday's close. In London, Brent crude for August delivery is trading at $69.19 a barrel.
Crude oil rose Monday after an attack by Nigerian militants shut a field operated by Royal Dutch Shell, cutting output from Africa’s biggest producer.
Currencies
The euro is trading at $1.4034 and at £0.8530.
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The dollar traded at a record low $1.6038 per euro on July 15th.
