Economics and business: Gross domestic product fell 0.3 percent in August, the state statistics agency ONS said on Wednesday. This was worse than expectations for zero growth and came after modest 0.1 percent growth in July.

– The economy shrank in August, and both production and services declined, said ONS chief economist Grant Fitzner.

The figures mean that the economy will most likely shrink in the third quarter. Otherwise, the economy should grow more than 1 percent in September, the ONS pointed out.

– The decline in GDP in August may mark the start of a downward trend that will continue into next year, said Samuel Tombs, chief economist at consulting firm Pantheon Macro.

The Bank of England indicated earlier this fall that Britain was already in recession. The International Monetary Fund (IMF) also predicts a sharp decline in the UK economy. According to forecasts presented this week, the economy will grow just 0.3 percent in 2023, compared with 3.6 percent this year.

Consumer-oriented services shrank in August by 1.8 percent, and the biggest declines were in sports, entertainment and leisure.

The figures reflect that the real income of UK households is under heavy pressure. Inflation in the UK hit 9.9 percent in August, while electricity bills soared.

(© NTB)