GDP falls 0.1% as Covid-19 vaccination programmes wind up



he UK’s economic system contracted within the final three months, new knowledge present, additional stoking fears {that a} recession is likely to be across the nook.

Gross home product (GDP) fell by 0.1% in the course of the three months to the tip of June, the Workplace for Nationwide Statistics (ONS) stated.

It’s a large step down from the primary quarter of the yr, when GDP rose 0.8%.

The service sector was notably badly hit, falling by 0.4% over the quarter, ONS consultants stated. A big a part of this was in well being and social work, and got here as much less cash was spent on the struggle in opposition to Covid-19.

GDP fell 0.6% in June, and the ONS revised its Might estimate from development of 0.5% to simply 0.4%.

ONS director of financial statistics Darren Morgan stated: “With Might’s development revised down just a little and June displaying a notable fall, general the economic system shrank barely within the second quarter.

Well being was the largest motive the economic system contracted as each the check and hint and vaccine programmes have been wound down, whereas many retailers additionally had a tricky quarter.

“These have been partially offset by development in motels, bars, hairdressers and outside occasions throughout the quarter, partly on account of folks celebrating the Platinum Jubilee.”

The Financial institution of England has warned that the UK may enter recession later this yr.

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