Britain’s economy contracted by 0.5% in July after summer washout, ONS says – sparking fears of a ‘light recession’ this year
The UK economy shrank by 0.5% in July after a summer washout and weeks of strike action, sparking fears of a ‘light recession’ later this year.
Data from the Office for National Statistics (ONS) today showed that gross domestic product (GDP) contracted at a sharper rate than the 0.2% decline economists had forecast.
It came after a 0.5% monthly increase in June.
ONS director of economic statistics Darren Morgan said: ‘Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months.
‘In July, industrial action by healthcare workers and teachers negatively impacted services, and it was a weaker month for construction and retail due to the poor weather.
Chancellor Jeremy Hunt says halving inflation is necessary to ‘deliver the sustainable growth and pay rises that the country needs’
‘Manufacturing also fell back following its rebound from the effect of May’s extra bank holiday.’
Chancellor Jeremy Hunt said: ‘Only by halving inflation can we deliver the sustainable growth and pay rises that the country needs.
‘But there are many reasons to be confident about the future.
‘We were among the fastest in the G7 to recover from the pandemic and the IMF (International Monetary Fund) have said we will grow faster than Germany, France and Italy in the long term.’
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