In April-June, the economy shrank 0.1% due to rising prices
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In April-June, the economy shrank 0.1% due to rising prices

According to fresh numbers released today, the UK GDP fell in the spring due to Covid and family anxiety about rising living costs.

GDP declined by 0.1% in the three months April to June, after expanding by 0.8% in the first quarter of the year, according to official data.The UK economy contracted by 0.1 per cent between April and June, compared to growth of 0.8 per cent in the previous three months, the Office for National Statistics said today.GDP fell 0.6 per cent in June - a fall blamed on the bank holidays for the Queen' Platinum Jubilee where a fall in output was not offset by higher spending on food and drink.Chancellor Nadhim Zahawi said: 'Our economy showed incredible resilience following the pandemic and I am confident we can pull through these global challenges again.

According to the Office for National Statistics, production was impacted by a drop in Covid expenditure on healthcare and indicators that families were tightening their wallets in the face of mounting expenses.
According to ONS specialists, the service sector was especially hard impacted, declining by 0.4% throughout the quarter.

A big portion of this was in health and social work, and it occurred as less money was spent on the Covid-19 war.

GDP decreased 0.6% in June, owing to the Queen’s Platinum Jubilee bank holidays, when a drop in production was not compensated by greater expenditure on food and drink.

The ONS also reduced its May forecast from 0.5 percent to 0.4 percent.

‘Health was the greatest reason the economy declined, as both the test and trace and vaccination programs were shut down,’ said ONS head of economic statistics Darren Morgan, adding that many merchants also had a poor quarter.

‘These were slightly offset by increases in hotels, pubs, hairdressers, and outdoor activities throughout the quarter, which was mainly due to people celebrating the Platinum Jubilee.’

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