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UK economy narrows for 1st time since COVID-19 pandemic

The British economy shrank 0.1% in the second quarter of 2022, marking the first contraction since the COVID-19 pandemic, preliminary data by the national statistical office showed on Friday.

The figure came in better than the market forecast of 0.2% fall.

Services fell 0.4%, with the largest negative contribution from human health and social work activities, reflecting a reduction in coronavirus activities, according to the Office for National Statistics (ONS).

There were positive contributions from consumer-facing services, including travel agencies and tour operators, as COVID-19 restrictions eased on the tourism industry, accommodation and food service activities, and arts, entertainment and recreation activities.

On the consumption side, household spending went down 0.2%, offsetting a positive contribution from net trade.

Source: Anadolu Agency