Britain’s economy shrinks more than expected in July

Britain’s economic output has shrunk by a larger-than-expected 0.5 percent in July after a growth of 0.5 percent in June, the Office for National Statistics (ONS) said on Wednesday.

Output of all three main sectors dropped in July, the ONS said, adding that services and construction sectors fell by 0.5 percent, and production went down by 0.7 percent.

According to the ONS, the decline in services output contributed significantly to the falloff output in GDP in July.

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“In July, industrial action by healthcare workers and teachers negatively impacted services, and it was a weaker month for construction and retail due to the poor weather.

“Manufacturing also fell back following its rebound from the effect of May’s extra Bank Holiday.

“However, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months,’’ said Darren Morgan, director of economic statistics at the ONS.

The ONS data had shown that Britain’s GDP increased by 0.2 per cent in the three months to July, with growth in all three main sectors. (Xinhua/NAN)