Unexpectedly, the UK economy contracted in August, increasing the possibility of a recession

Date:

Unexpectedly, the UK economy contracted in August

  • News by AUN News correspondent
  • AUN News – ISSN: 2949-8090

Summary:

The UK economy contracted by 0.3% in August, official figures show. The drop from 0.1% in July increased the likelihood of a recession. The oil and gas industry’s slowdown and a severe manufacturer’s reduction were to blame for the monthly figure’s decline.

According to official figures, the UK economy unexpectedly contracted in August for the first time in two months.

According to the Office for National Statistics, the economy expanded by 0.1% in July, so the unexpected 0.3% decline increased the likelihood of a recession.

Analysts had anticipated that economic growth would stagnate as businesses and individuals dealt with rising prices.

The UK will enter a recession toward the end of the year, the Bank of England has warned.

Two consecutive quarters, or three-month periods, of declining economic production are considered a recession. The UK economy also contracted by 0.3% in the three months ending in August compared to the three months ending in May 2022.

According to the Office for National Statistics, the oil and gas industry’s slowdown and a severe manufacturer’s reduction were to blame for the monthly figure’s decline.

According to ONS Chief Economist Grant Fitzner, “the economy fell in August with both production and services sliding back, and with a minor negative revision to July’s growth, the economy contracted in the last three months as a whole.”

Numerous customer-facing industries, including retail, hair salons, and hotels, were “faring relatively poorly,” Mr. Fitzner continued.

Analysis by: Advocacy Unified Network

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Policy Evaluation: Navigating the Landscape of Evidence-Based Decision-Making

News by AUN News correspondent Monday, May 06, 2024 AUN News –...

Escalating Diplomatic Crisis: Allegations of Chemical Weapon Use in Ukraine Spark Global Concern

News by AUN News correspondent Thursday, May 02, 2024 AUN News –...

Pacific International Labor Day: A Snapshot of Labor Conditions Amidst Conflict

News by AUN News Editorial desk Wednesday, May 01, 2024 AUN...

Forging Ahead: Asia-Pacific’s Path to Resilience Amid Global Challenges

News by AUN News correspondent Tuesday, April 30, 2024 AUN News –...