UK economy shrank in July, official data shows
13 Sep 2023
Data published by the Office for National Statistics (ONS) has revealed that the UK economy shrank more than experts had expected in July as a result of strike action and wet weather.
Bad weather adversely affected the retail and construction sectors, which caused the economy to contract by 0.5%.
However, the ONS stated that the broader outlook for the UK economy looks 'more positive'. Its data showed that GDP grew by 0.2% in the three months to July 2023, and that sporting events and a rising number of theme park visits helped to provide a minor boost to the economy.
Responding to the data, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Today's figures showing GDP grew by 0.2% in the three months to July, with a 0.5% decline in July itself, underlines the precarious state of the economy.
'Small and medium-sized businesses continue to battle against stubbornly high inflation, rising interest rates, trade barriers with the EU, higher taxes, and an uncertain labour market.
'Businesses need to see a clear framework from politicians, outlining how long-term investment can be unlocked, and economic growth accelerated.'