UK Economy Contracts by 0.5% in July 2023

The UK economy experienced a contraction of 0.5% in July 2023 compared to the previous month, according to a report released by the UK Office for National Statistics (ONS).

Unexpectedly Larger Contraction

In July of last year, the economy was expected to contract by only 0.2%, making this year’s decline larger than anticipated.

Decline in Industrial Production and Services

The ONS report reveals that industrial production decreased by 0.7% during this period, while the service sector and construction saw a decline of 0.5%.

Quarterly Growth Increase

Looking at the quarterly growth for the three months ending in July 2023, the gross domestic product (GDP) showed a modest increase of 0.2%.

Inflation Rate Hits 17-Month Low

In July 2023, the official data indicated that Britain’s inflation rate reached its lowest level in 17 months, primarily due to a drop in energy prices.

Source: Prime