UK GDP sags by 0.5% in July as recession looms 'around the corner'
Production output fell by 0.7% in July after growth of 1.8% in June, largely due to a 0.8% drop in the manufacturing sector.
All three main sectors of the UK economy saw contractions throughout the month, data from the Office for National Statistics revealed today (13 September).
Services output fell 0.5% in July, as did the construction sector, despite growth of 1.6% in June.
Production output fell by 0.7% in July after growth of 1.8% in June, largely due to a 0.8% drop in the manufacturing sector.
UK business leaders forecast inflation to fall over next 12 months
Strike action from doctors and radiographers contributed to the fall in services output, with the human health activities industry declining 3.4% throughout the month.
Wet weather also played a partial role in the decline, the ONS said, with rainfall at 170% of average overall, leading to a drop in retail sales.
Nicholas Hyett, investment analyst at Wealth Club, said: «Although some positive results from the arts and sports sectors may be a bit of a surprise after one of the wettest July's on record, the services sector was generally weak.
»Industrial action in the NHS explains a lot of the move, hitting output in health and social work, but there is weakness across business facing services.
Hyett continued: «Corporate weakness is also reflected in the weak manufacturing data, suggesting that while consumers are still willing to splash the cash to some degree, businesses are spending less and industrial demand is weak.
»Together with a decline in job vacancies announced earlier in the week, it suggests to us that the UK economy is slowing."
UK PMI dips for first time since January
Despite the poor numbers, Neil Birrell, CIO of Premier Miton, argued this
Read more on investmentweek.co.uk
