UK economy shrinks by 0.1% as cost-of-living crisis bites

This decline compares to the first three months of this year when GDP actually grew by 0.8%. The reduction was less than the 0.3% decline forecast by analysis, but it shows signs that rising inflation and the cost-of-living crisis are beginning to take hold in the UK. The data revealed that in June alone the economy shrank by 0.6% as the extra bank holidays from the Jubilee distorted output, with an extra working day in May and two fewer in June. According to the ONS, the biggest contributor to the decline was a 0.4% drop in services. Hussain Mehdi, macro & investment strategist...