A report from the Office for National Statistics (ONS) revealed Wednesday that the UK’s economy contracted less than initially estimated in the second quarter of 2020.

According to the final estimate, the UK gross domestic product (GDP) fell at a 19.8 percent q-o-q in the second quarter, slower than a 20.4 percent q-o-q drop reported in the advance estimate. Still, this is the largest quarterly contraction ever and the second consecutive quarterly drop in GDP.

Economists had expected the decline rate to be unrevised at 20.4 percent q-o-q, following the first quarter's decrease of 2.5 percent q-o-q (revised from -2.2 percent).

In y-o-y terms, the UK’s GDP fell 21.5 percent in the second quarter, following a 1.7 percent decline in the previous quarter.

Gross fixed capital formation fell -21.6 percent q-o-q, also less than initially thought (-25.5 percent q-o-q). Business investment (-26.5 percent q-o-q) made the largest contribution to the decline.

Meanwhile, declines of household consumption (-23.6 percent q-o-q, the largest quarterly contraction on record) and government consumption (-14.6 percent q-o-q) were downwardly revised from the previous estimate.

Elsewhere, net external demand contributed positively, as imports (-22.7 percent q-o-q) declined more than exports (-11 percent q-o-q).