Gross domestic product fell 0.3 percent in August, the country’s ONS statistics agency said Wednesday. This was worse than expectations for zero growth and came after a modest 0.1 percent growth in July.
– The economy shrank in August, and both production and services declined, said the ONS chief economist, Grant Fitzner.
The numbers mean that the economy is likely to shrink in the third quarter. Otherwise, the economy should grow by more than 1 percent in September, said the ONS.
Sports and entertainment
Consumer-oriented services shrank in August by 1.8 percent, and the biggest declines were in sports, entertainment and leisure.
– The decline in GDP in August may mark the beginning of a downward trend that will continue into next year, said Samuel Tombs, chief economist at consulting firm Pantheon Macro.
Hard pressure on most Brits
The figure reflects that the real income of UK households is under heavy pressure. Inflation in the UK hit 9.9 per cent in August, while electricity bills skyrocketed.
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.
NTB
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