UK economy contracts in July on strikes, wet weather
Analysts’ consensus forecast had been for 0.2 per cent contraction in GDP
BRITAIN’S economy shrank more than expected in July, hit by strike action and wet weather, official data showed Wednesday (13).
Output contracted 0.5 per cent compared with growth of 0.5 per cent in June, the Office for National Statistics added in a statement.
Analysts’ consensus forecast had been for contraction to gross domestic product in July of 0.2 per cent.
“Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months,” noted ONS director of economic statistics, Darren Morgan.
“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.”
Britain has endured more than a year of strikes by public and private sector workers as they seek wage rises in the face of high inflation.