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

‘Difficult to dodge recession’

Eve Maddock-Jones
clock • 2 min read

The UK GDP contracted by 0.1% in the second quarter of the year, data from the Office for National Statistics revealed.

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...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Market outlook 2023: Is the glass half full or half empty?

Market outlook 2023: Is the glass half full or half empty?

Time to acknowledge the 'foggy nature' of current conditions

Laith Khalaf
clock 08 February 2023 • 3 min read
The Bank of England

Bank of England meets expectations with 0.5 percentage point hike

UK domestic inflationary pressures had been 'firmer than expected'

Elliot Gulliver-Needham
clock 02 February 2023 • 5 min read
OBR intendeds to reduce these forecasts by between 0.2% and 0.5% because of weakness in the economy and labour market shortages

Britain growth forecast to be downgraded before March impacting Budget

Due to weakness in the economy and labour market shortages

Kathleen Gallagher
clock 25 January 2023 • 1 min read