Britain's economy shrinks more than expected in July

LONDON. KAZINFORM - Britain's economic output shrank by a larger-than-expected 0.5 percent in July after growth of 0.5 percent in June, the Office for National Statistics (ONS) said on Wednesday, Kazinform cites Xinhua.
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Photo: Gerd Altmann/Pixabay

Output of all three main sectors dropped in July. The ONS said the services and construction sectors fell by 0.5 percent, and production went down by 0.7 percent.

According to the ONS, the decline in the services output was the main contributor to the fall in GDP in July.

«In July, industrial action by healthcare workers and teachers negatively impacted services, and it was a weaker month for construction and retail due to the poor weather. Manufacturing also fell back following its rebound from the effect of May's extra Bank Holiday,» said Darren Morgan, director of economic statistics at the ONS.

«However, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months,» Morgan noted.

The ONS data showed Britain's GDP increased by 0.2 percent in the three months to July, with growth in all three main sectors.


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