Britain鈥檚 economy shrank by 0.3% between July and August, down from downwardly revised growth of 0.1% the previous month, according to the Office for National Statistics (ONS). Experts had been expecting economic growth to flatline in August.
The latest data means the economy is on track to contract overall in the third quarter, with the ONS confirming there would need to be growth of more than 1% in September to prevent a quarterly decline. The ONS said there has been a continued slowing in three-month on three-month growth, with gross domestic product (GDP) falling by 0.3% in the quarter to August.
Chancellor Kwasi Kwarteng said: 鈥淐ountries around the world are facing challenges right now, particularly as a result of high energy prices driven by Putin鈥檚 barbaric action in Ukraine. That is why this Government acted quickly to put in place a comprehensive plan to protect families and businesses from soaring energy bills this winter.
鈥淥ur growth plan will address the challenges that we face with ambitious supply-side reforms and tax cuts, which will grow our economy, create more well-paid skilled jobs and, in turn, raise living standards for everyone.鈥
Grant Fitzner, chief economist of the ONS, said: 鈥淭he economy shrank in August with both production and services falling back, and with a small downward revision to July鈥檚 growth the economy contracted in the last three months as a whole.
鈥淥il and gas production fell as more scheduled North Sea summer maintenance took place than usual.
鈥淣otable decreases were also seen across much of manufacturing.
鈥淗ealth also contributed to the decline, with a drop in the number of hospital consultations and operations.鈥
He added: 鈥淪ports events too had a slower month after a strong July and many other consumer-facing services struggled with retail, hairdressers and hotels all faring relatively poorly.
鈥淥n the positive side, these falls were partially offset by stronger than usual summer performance from many professional services such as lawyers, accountants and architects.鈥
