The UK economy shrank surprisingly sharply in July, as retailers and construction projects were knocked by wet weather, sparking fresh fears of a recession.
Experts had forecast a 0.2 per cent decline in gross domestic product (GDP), but official data shows it contracted by 0.5 per cent. The bigger-than-expected slump came after 0.5 per cent growth in June.
Economists said that Britain was “walking a tightrope” after the shock setback – with some saying a recession may have already begun.
Paul Dales, chief UK economist at Capital, said a mild recession may have already begun, with July’s decline suggesting that “underlying growth has lost momentum since earlier in the year”.
Source: Yahoo Finance
