Coronavirus: United Kingdom, facing worst recession on record, sees GDP drop 20.4% in Q2

The UK has seen its economy, hit by the coronavirus crisis, suffer a "record" contraction of 20.4% in the second quarter, and is officially facing its worst recession on record, agency figures show National Statistics (ONS), published Wednesday 12 August. 
Economists consider that a country enters a technical recession when it accumulates two consecutive quarters of contraction in its economy. According to the ONS, most of the contraction, which began to be felt in March, occurred in April, an entire month of containment and almost total cessation of activity in the country, which saw production collapsed by 20%.

With a very early recovery in construction sites and manufacturing activity, gross domestic product (GDP) rebounded in May by 2.4% (revised figure), followed by an acceleration in June (+8.7 %) thanks in particular to the reopening of all shops. This is the biggest contraction in the UK economy since the ONS began these quarterly statistics in 1955, he said…

US unemployment figures push the S&P 500 to the abyss

In the United States, there are now over 20 million unemployed people receiving an allowance of 600 million dollars. This figure, which attests to the damage caused by the coronavirus in the world's largest economy, explains the plunge in the S&P 500 index, representative of the 500 largest companies listed on the NYSE and Nasdaq.
US unemployment figures push the S&P 500 to the abyss

On Thursday, the index designed and managed by Standard and Poor's, which covers 80% of the US stock market, recorded its worst loss in nearly four weeks. In the wake, tech stocks deepened the downtrend. Microsoft's better-than-expected result was not enough to stem the stock's fall.

Overall, GAFAM helped push the S&P 500 down 40.36 points, or 1.2%, to 3,235.66 for its first loss in five days. The Dow Jones Industrial Average lost 353.51 points, or 1.3%, to 26,652.33. The Nasdaq for its part yielded 244.71 points, or 2.3%, to 10,461.

Generally speaking, markets are waiting for a coronavirus vaccine to rebound. Created on March 4, 1957, the S&P 500 index, more representative than the Dow Jones Industrial Average (30 companies), losing momentum with the collapse of the industrial sector which saw its share in the S&P 500 fall by 86% in 1976 at only 10% in 2016.