London, Friday, 12 august 2022
According to preliminary estimates, the British economy shrank by 0.1% quarter over quarter in the three months that ended in June of 2022, marking the first contraction in more than a year and falling short of market expectations of a 0.2% decline.
Services decreased by 0.4%, with human health and social work activities contributing the most negatively due to a decline in coronavirus activity.
On the other side, as COVID-19 restrictions on the tourist industry, lodging and food service activities, and arts, entertainment, and recreational activities were relaxed, there were beneficial contributions from consumer-facing businesses, including travel agencies and tour operators.
The cost of living problem weighed on household spending, which decreased by 0.2%, offsetting a positive contribution from net trade. The economy grew 1.9% over the previous year.
(Source: Office for National Statistics // Edited by: The Decision Maker – Finance editors)