The British economy contracted less than expected in June, even with the weight exerted by public holidays, although the sectors most exposed to the worsening cost of living crisis, such as retail and restaurants, have shown difficulties.
Output for the second quarter as a whole still contracted, however, with the UK expected to enter a long pullback later in the year on rising inflation and interest rates.
The Bureau of National Statistics said gross domestic product (GDP) fell 0.6% in June, the biggest contraction since January 2021 but less severe than the 1.3% drop forecast in a Reuters poll of economists.
For the second quarter as a whole, the agency said the economy contracted 0.1% against expectations for a 0.3% decline.
The month of June was exceptionally marked by two bank holidays to celebrate Queen Elizabeth’s Platinum Jubilee, but the biggest drag on GDP in June came from the coronavirus-related drop in healthcare.
“It’s impossible to say whether this reflects a smaller-than-usual Jubilee hit, or evidence that the economy has considerable momentum,” said Samuel Tombs, economist at consultancy Pantheon Macroeconomics.
In any case, he said, GDP is likely to recover in July.
Friday’s data pointed to growing weakness among consumer-oriented sectors of the economy as Britons grapple with inflation at a 40-year high after the war in Ukraine.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
