") no-repeat center center;background-size:10px 16px;content:' '}@media(min-width:768px){.UeJNJ::before{display:none}}.cPCVUJ{min-height:389px;margin-bottom:16px;clear:both}@media(min-width:1000px){.cPCVUJ{min-height:380px}}.rAFIl{width:100%;box-sizing:border-box}@media(min-width:768px){.rAFIl{max-width:634px}}@media(min-width:1250px){.rAFIl{max-width:622px}}.dLkuvY{display:flex;width:auto;box-sizing:border-box;align-items:center;justify-content:flex-start;gap:4px;color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.jrwZqm{display:block;font:bold 14px/20px 'Indy Sans','Indy Sans Fallback',sans-serif;text-decoration-line:underline;margin-block:0;text-align:center}.dHXFkr{display:inline-flex;align-items:center;justify-content:center;gap:4px}.dHXFkr:hover .sc-aja53j-2,.dHXFkr:hover .sc-a5wy94-0{color:#ac2a2c;color:light-dark(#ac2a2c,#f58992)}.lcJUSj{font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}.hJPJVF{display:flex;position:relative;overflow:hidden;width:auto;height:40px;flex-direction:column;order:-1;gap:8px;opacity:1;transition:all .5s ease-in-out;transition-behavior:allow-discrete}.hJPJVF::after{--fade-from:rgba(255,255,255,0);--fade-mid:rgba(255,255,255,0.5);--fade-to:#fff;position:absolute;bottom:0;left:0;z-index:1;width:100%;height:40px;background-image:linear-gradient(to bottom,var(--fade-from) 0,var(--fade-mid) 50%,var(--fade-to) 100%);content:'';opacity:1;pointer-events:none;transition:opacity 150ms ease-out}@supports(color:light-dark(red,red)){.hJPJVF::after{--fade-from:light-dark(rgba(255,255,255,0),rgba(0,0,0,0))}}@supports(color:light-dark(red,red)){.hJPJVF::after{--fade-mid:light-dark(rgba(255,255,255,0.5),rgba(0,0,0,0.5))}}@supports(color:light-dark(red,red)){.hJPJVF::after{--fade-to:light-dark(#fff,#000)}}@media(min-width:768px){.PdmgT{order:-1}}@media(min-width:768px){.eMEmGu{display:flex;position:relative;align-items:flex-start;margin-top:12px}}@media(min-width:1000px){.lfyduH .taboola{display:none}}.lfyduH:has(#taboola-carousel-thumbnails){min-height:426px}.lfyduH:has(#taboola-mid-article-thumbnails-crime){min-height:405px}@media(min-width:1000px){.lfyduH:has(#taboola-carousel-thumbnails),.lfyduH:has(#taboola-mid-article-thumbnails-crime){min-height:0}}.iUtUOL .tp-container-inner,.iUtUOL .sc-1suqprf-0{position:relative;box-shadow:0 -22px 16px 22px rgba(255,255,255,0.95);box-shadow:0 -22px 16px 22px light-dark(rgba(255,255,255,0.95),rgba(0,0,0,0.95))}.iUtUOL.closed{display:none}.dcGiwu{width:32px}.dcGiwu,.dcGiwu:focus{color:#3b5998;color:light-dark(#3b5998,#627aac)}.dcGiwu:hover,.dcGiwu:active,.dcGiwu:focus-visible{color:#2f4779;color:light-dark(#2f4779,#9cabcb)}@media(min-width:768px){.dcGiwu.mobile-only{display:none}}.fOiFgH{width:32px}.fOiFgH,.fOiFgH:focus{color:#000;color:light-dark(#000,#4e4e4e)}.fOiFgH:hover,.fOiFgH:active,.fOiFgH:focus-visible{color:#4e4e4e;color:light-dark(#4e4e4e,#919191)}@media(min-width:768px){.fOiFgH.mobile-only{display:none}}.enjvCw{width:32px}.enjvCw,.enjvCw:focus{color:#25d366;color:light-dark(#25d366,#25d366)}.enjvCw:hover,.enjvCw:active,.enjvCw:focus-visible{color:#1da851;color:light-dark(#1da851,#66e093)}@media(min-width:768px){.enjvCw.mobile-only{display:none}}.jctBRm{width:32px}.jctBRm,.jctBRm:focus{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.jctBRm:hover,.jctBRm:active,.jctBRm:focus-visible{color:#ac2a2c;color:light-dark(#ac2a2c,#f58992)}@media(min-width:768px){.jctBRm.mobile-only{display:none}}.dzqQwN{display:flex;gap:12px}.dFzDMM .sc-17yxc4y-0{display:none}.dFzDMM:hover .sc-17yxc4y-0,.dFzDMM.bookmark-button-saved .sc-17yxc4y-0{display:block}.dFzDMM:hover .sc-17yxc4y-1,.dFzDMM.bookmark-button-saved .sc-17yxc4y-1{display:none}.dFzDMM.bookmark-button-saved .sc-17yxc4y-0{display:block}.dFzDMM.bookmark-button-saved .sc-17yxc4y-1{display:none}.dFzDMM.bookmark-button-saved:hover .sc-17yxc4y-0{display:none}.dFzDMM.bookmark-button-saved:hover .sc-17yxc4y-1{display:block}.lfNyeg{display:inline-block;width:32px;height:32px;color:#337e81;color:light-dark(#337e81,#70a5a7)}.sQzGY{display:flex;flex-direction:row;justify-content:center;gap:12px}.cNueyK{display:flex;position:relative;justify-content:center}@media(min-width:768px){.cNueyK{justify-content:flex-end;padding-top:12px;margin:0}}.dUmHef{display:flex}.sticky .dUmHef{flex-direction:column}.igSthU{overflow:hidden;height:23px;margin-bottom:8px;border-bottom:0;clear:both}@media(min-width:768px){.igSthU{height:25px}}.fvIzys{display:inline-block;flex-shrink:0;margin:0 12px 0 0;font:bold 14px/normal 'Indy Sans','Indy Sans Fallback',sans-serif}.fvIzys::after{content:':'}.knjHva{display:inline-block;margin-right:12px;margin-bottom:4px;color:#222;color:light-dark(#222,#fff);font:normal 14px/1.29 'Indy Sans','Indy Sans Fallback',sans-serif;text-decoration:underline}.knjHva::first-letter {text-transform:capitalize}@media(min-width:1000px){.subscribed .gryCYY{margin-top:-184px}.article-feature:not(.article-feature-video) .subscribed .gryCYY{margin-top:-407px}}.gryCYY>p{margin:16px 0}.article-premium .gryCYY>p{line-height:27px}.gryCYY>h2{font-size:21px}.article-climate .gryCYY>h2{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.article-sgi .gryCYY>h2{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.gryCYY>p:first-child{margin-top:0}.gryCYY span:first-child~p:first-of-type{margin-top:0}.FtcnY{display:flex;position:relative;max-width:100%;min-height:600px;justify-content:center;margin:0 auto;background-color:transparent;clear:both}@media(min-width:1000px){.FtcnY{min-height:450px}}.teads .FtcnY{display:block}.FtcnY [data-mpu]{position:sticky;top:16px}@media(min-width:1000px){.cCcguK{display:none}}.cCcguK[data-mpu1]{min-height:600px}.cCcguK.pb-20{padding-bottom:20px}.dFpFuY{overflow:hidden;width:100%;box-sizing:border-box;margin-bottom:16px}@media(min-width:768px){.dFpFuY{max-width:634px}}@media(min-width:1250px){.dFpFuY{max-width:622px}}.dmMyEN{width:100%;box-sizing:border-box;padding:8px 12px 12px;border-top:8px solid #ec1a2e;border-top:8px solid light-dark(#ec1a2e,#ec1a2e);background-color:#fde8ea;background-color:light-dark(#fde8ea,#66000a)}@media(min-width:768px){.dmMyEN{padding-top:4px;padding-bottom:12px}}.fXvmgM{font:bold 22px/26px 'Indy Serif','Indy Serif Fallback',serif;margin:0 0 12px;text-align:center}@media(min-width:768px){.fXvmgM{font:bold 30px/34px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.048px;margin-bottom:12px;text-align:left}}.ivTlwT{display:block;margin-bottom:12px}@media(min-width:768px){.ivTlwT{display:none}}.hfMbpT{display:flex;width:100%;box-sizing:border-box;align-items:center;justify-content:center;gap:4px;background-color:#fde8ea;background-color:light-dark(#fde8ea,#66000a);color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}@media(min-width:768px){.hfMbpT{width:auto;justify-content:flex-start}}.dAuNha{display:block;font:bold 14px/20px 'Indy Sans','Indy Sans Fallback',sans-serif;text-decoration-line:underline;margin-block:0;text-align:center}.jiDyot{display:inline-flex;align-items:center;justify-content:center;gap:4px}.jiDyot:hover .sc-hez36s-5,.jiDyot:hover .sc-a5wy94-0{color:#ac2a2c;color:light-dark(#ac2a2c,#f58992)}.laZbyn{font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}.juUDRT{display:flex;width:100%;flex-direction:column}@media(min-width:768px){.juUDRT{display:flow-root;gap:24px;transition:margin-bottom .3s ease-in-out}}.kRWakq{display:flex;width:100%;flex-direction:column;align-items:center;justify-content:center}@media(min-width:768px){.kRWakq{position:relative;z-index:1;width:212px;flex-shrink:0;justify-content:flex-start;margin-left:24px;float:right}}.eJjJXF{display:none;flex-direction:row;align-items:center;justify-content:center;gap:8px;margin-top:8px}@media(min-width:768px){.eJjJXF{display:flex;margin-top:12px}}.dLfZIO{display:flex;width:100%;align-items:center;justify-content:center;gap:8px;margin-top:8px;margin-bottom:12px}@media(min-width:768px){.dLfZIO{display:none}}@media(min-width:768px){.cqPbFA{order:-1}}.jZSKtc .sc-aja53j-5::after{--fade-from:rgba(253,232,234,0);--fade-mid:rgba(253,232,234,0.5);--fade-to:#fde8ea}@media(min-width:360px){.jZSKtc .sc-aja53j-5 .sc-aja53j-7{display:none}}@supports(color:light-dark(red,red)){.jZSKtc .sc-aja53j-5::after{--fade-from:light-dark(rgba(253,232,234,0),rgba(102,0,10,0))}}@supports(color:light-dark(red,red)){.jZSKtc .sc-aja53j-5::after{--fade-mid:light-dark(rgba(253,232,234,0.5),rgba(102,0,10,0.5))}}@supports(color:light-dark(red,red)){.jZSKtc .sc-aja53j-5::after{--fade-to:light-dark(#fde8ea,#66000a)}}.cKWiEj{margin:0 0 24px;font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}.huxBsk{font:bold 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}.jaiOuh{display:flex;min-height:600px;justify-content:center}@media(min-width:1000px){.jaiOuh{min-height:450px}}.jasvOK{min-height:600px}@media(min-width:1000px){.jasvOK{min-height:450px}}.jasvOK.mobile-only{display:block}@media(min-width:1000px){.jasvOK.mobile-only{display:none}}.jasvOK.desktop-only{display:none}@media(min-width:1000px){.jasvOK.desktop-only{display:block;margin-bottom:16px}}.jasvOK.desktop-only+p{margin-top:0}.jasvOK .third-party-ad{position:sticky;top:16px}.bYBoJE{width:100%;flex-grow:1}.bYBoJE .social-share{width:100%;padding-top:10px;padding-bottom:20px}@media(min-width:768px){.bYBoJE .social-share{justify-content:flex-start}}.bYBoJE .social-share.sticky{display:none}@media(min-width:1000px){.bYBoJE .social-share.sticky{display:flex;position:sticky;top:14px;width:34px;flex-direction:column;padding-top:0;margin-top:0;margin-left:-25%}.bYBoJE .social-share.sticky .sc-mgcah7-0{margin:0 0 16px}.article-feature-video .bYBoJE .social-share.sticky{margin-top:0}.article-feature:not(.article-feature-video) .bYBoJE .social-share.sticky{margin-top:35%}}.bYBoJE.sponsored-article img,.bYBoJE.sponsored-article video{width:100%;max-width:602px;height:auto}.bYBoJE.sponsored-article iframe{max-width:602px;max-height:400px}.bYBoJE .under-article-prompt-donations{padding-bottom:8px;margin-top:-3px}.bYBoJE .big-letter{--color:#222;display:flex;position:relative;width:0;height:0;align-items:center;justify-content:center;padding:40px;margin-top:22px;margin-right:12px;border:1px solid var(--color);float:left;font:normal 52px/1 'Indy Serif','Indy Serif Fallback',serif;text-transform:uppercase}.bYBoJE .big-letter:first-child{margin-top:6px}.bYBoJE .big-letter::before{position:absolute;top:0;left:0;width:100%;height:100%;box-sizing:border-box;border:1px solid var(--color);border-radius:50%;content:''}.bYBoJE #taboola-below-article-1{min-height:2350px}@media(min-width:768px){.bYBoJE #taboola-below-article-1{min-height:3370px}}.bYBoJE #taboola-below-article-1-split-num-1{min-height:130px}@media(min-width:768px){.bYBoJE #taboola-below-article-1-split-num-1{min-height:415px}}.bYBoJE .sc-fwko30-0+.sc-1xtsh2b-0{margin-top:-16px}@media(min-width:768px){.bYBoJE{max-width:636px;margin:0}}@media(min-width:1000px){.bYBoJE{max-width:624px;margin:0}.bYBoJE.subscribed{max-width:636px}}@media(max-width:999px){.bYBoJE{padding-right:0}.bYBoJE .under-article-prompt-donations{margin-top:-18px}}.bYBoJE .anchor-nav-header{scroll-margin-top:79px}.bYBoJE .anchor-nav-header a{color:#222;color:light-dark(#222,#fff)}.bYBoJE .anchor-nav-header a:hover{color:#222;color:light-dark(#222,#fff)}@supports(color:light-dark(red,red)){.bYBoJE .big-letter{--color:light-dark(#222,#fff)}}.jYgehE{display:flex;flex-wrap:wrap;justify-content:flex-start;margin-bottom:8px;color:#646464;color:light-dark(#646464,#bdbdbd);font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.jYgehE{width:70%;align-items:center;justify-content:flex-start;margin-bottom:0;font:normal 16px/24px 'Indy Sans','Indy Sans Fallback',sans-serif}}@media(min-width:1000px){.jYgehE{width:70%;margin-bottom:0}}.dMNxBE{display:flex;height:20px;margin:0 12px 8px 0}.article-voices .dMNxBE{height:auto}@media(min-width:425px){.article-voices .dMNxBE{height:20px}}.dMNxBE::before{display:inline-block;align-self:center;margin-top:1px;margin-right:12px;content:'\2022';transform:scale(1.5)}.dMNxBE:first-child::before{content:none}@media(min-width:768px){.dMNxBE{height:24px;margin-bottom:0}.dMNxBE::before{margin-top:2px}}.dMNxBE time{display:block}.dMNxBE time::first-letter {text-transform:capitalize}.fqqqQy{display:inline-block;margin:0 12px 8px 0;color:#ec1a2e;color:light-dark(#ec1a2e,#ef4757);font:bold 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif;letter-spacing:-0.5px}.fqqqQy:hover,.fqqqQy:active{color:#ac2a2c;color:light-dark(#ac2a2c,#f58992)}@media(min-width:768px){.fqqqQy{margin-bottom:0}}.oMeFT{margin:0 4px 8px 0}.oMeFT::before{display:inline-block;margin-top:2px;margin-right:12px;color:#646464;color:light-dark(#646464,#bdbdbd);content:'\2022';transform:scale(1.5)}.oMeFT:first-child::before{display:none}@media(min-width:768px){.oMeFT{margin-bottom:0}}.bMRmfY{display:flex;justify-content:flex-start;padding:0;margin:0 0 16px}@media(min-width:768px){.bMRmfY{display:flex;width:30%;align-items:center;justify-content:flex-end;margin:0}}@media(min-width:1000px){.bMRmfY{width:30%}}.dfBarH{padding-top:0;border-top:0;border-bottom:0}@media(min-width:768px){.dfBarH{display:flex;flex-flow:row wrap;padding-bottom:16px}.dfBarH .sc-mzrbq8-0{order:1}.dfBarH .sc-mzrbq8-6{order:2}}@media(min-width:1000px){.dfBarH{flex-direction:row}}.klGymp{padding:16px 12px 12px;text-align:left;font:bold 14px/18px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.klGymp{padding:16px 16px 12px}}.article-infact .klGymp{padding:16px 0}@media(min-width:1000px){.klGymp{padding:24px 0 19px}.article-feature .klGymp{max-width:968px;margin:0 auto}}.klGymp a{color:#222;color:light-dark(#222,#fff)}.klGymp a:hover{color:#ac2a2c;color:light-dark(#ac2a2c,#f58992)}.klGymp a:hover::after{color:#222;color:light-dark(#222,#fff)}.klGymp a::after{margin-right:4px;margin-left:4px;content:'>'}.klGymp a:last-child::after{display:none}.gbPKFW{margin:0 0 20px;letter-spacing:0}.drRZfZ{margin:0;color:#646464;color:light-dark(#646464,#bdbdbd);font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.drRZfZ{font:normal 18px/22px 'Indy Sans','Indy Sans Fallback',sans-serif}}@media(min-width:1000px){.drRZfZ{font:normal 20px/24px 'Indy Sans','Indy Sans Fallback',sans-serif}}.drRZfZ p{font:inherit}.article-feature .drRZfZ a{font-weight:bold}.hYTnrH{max-width:968px;margin:0 auto;background:#fff;background:light-dark(#fff,#000)}@media(min-width:1000px){.parallax .hYTnrH{max-width:1240px}}.fdtMsm{font:bold 32px/36px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0156em}@media(min-width:768px){.fdtMsm{font:bold 44px/48px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0113em}}@media(min-width:1000px){.fdtMsm{font:bold 54px/58px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0092em}}.kZQexU .sc-qvufca-0{margin:0 12px}@media(min-width:768px){.kZQexU .sc-qvufca-0{max-width:968px;margin-right:16px;margin-left:16px}}@media(min-width:1000px){.kZQexU .sc-qvufca-0{margin-right:auto;margin-left:auto}}.kZQexU .sc-qvufca-2{margin-bottom:16px;color:#222;color:light-dark(#222,#fff)}@media(min-width:768px){.kZQexU .sc-qvufca-2{margin-bottom:18px}}@media(min-width:1000px){.kZQexU .sc-qvufca-2{margin-top:0}}.article-feature .kZQexU .sc-qvufca-2{text-align:center}@media(min-width:1000px){.article-feature .kZQexU .sc-qvufca-2{max-width:968px}}.kZQexU .sc-1cmj4ml-0{margin-bottom:16px}@media(min-width:1000px){.kZQexU .sc-1cmj4ml-0{max-width:968px}}.kZQexU .sc-1cmj4ml-0 p{margin-top:0}@media(min-width:768px){.kZQexU .sc-1cmj4ml-0 p{margin-bottom:16px}}@media(min-width:2560px){.kZQexU .sc-1cmj4ml-0 p{margin-bottom:12px}}@media(min-width:1000px){.kFNaRc .sc-qvufca-1{padding:0 16px}}.fzuCgM{overflow:hidden;height:0;color:transparent}.fmcHss{max-width:100%;margin:0 0 20px}.fmcHss.sticky{position:sticky;top:16px}.hlxBlR{min-height:600px}.hlxBlR #mpu1,.hlxBlR #sidebar1{position:sticky;top:16px}.MxpAk{min-height:250px}.clQXMC{max-width:100%}.eEtnsS{margin:0 0 6px;color:#646464;color:light-dark(#646464,#bdbdbd);font-family:'Indy Sans','Indy Sans Fallback',sans-serif;font-size:15px}.PbXHI{margin:0 0 12px}.hVucHy{height:380px}.pAheK{width:100%;height:51px}.lgmjvx{margin-bottom:16px;border-bottom:1px solid #919191;border-bottom:1px solid light-dark(#919191,#646464)}.gSAEA-d{margin-bottom:16px}.gSAEA-d [role='listitem']{position:relative;margin-bottom:12px;border-bottom:1px solid #d3d3d3;border-bottom:1px solid light-dark(#d3d3d3,#919191)}.gSAEA-d [role='listitem'] .sc-u4n1j-0{display:flex;position:absolute;bottom:16px;left:10px;width:32px;height:32px;align-items:center;justify-content:center;border-radius:50%;background-color:#ec1a2e;background-color:light-dark(#ec1a2e,#ec1a2e)}.gSAEA-d [role='listitem'] .sc-u4n1j-0>svg{width:90%;fill:#fff;fill:light-dark(#fff,#000);stroke:transparent}.gSAEA-d [role='listitem']:first-child{display:block;padding-bottom:0;margin-bottom:12px}.gSAEA-d [role='listitem']:first-child .sc-u4n1j-0{top:-15px;bottom:auto;left:12px}.gSAEA-d [role='listitem']:first-child>*:first-child{display:block;width:100%;height:205px}.gSAEA-d [role='listitem']:first-child>*:last-child{--content-bg:#222;--content-bg-opaque:rgba(34,34,34,0.7);position:absolute;bottom:0;width:100%;padding:28px 12px 12px;background:linear-gradient(to top,var(--content-bg) 70%,var(--content-bg-opaque) 100%) no-repeat;color:#fff;color:light-dark(#fff,#222);font-size:17px;font-weight:bold}.gSAEA-d [role='listitem']:last-child{margin-bottom:0;border-bottom:0 none}@supports(color:light-dark(red,red)){.gSAEA-d [role='listitem']:first-child>*:last-child{--content-bg:light-dark(#222,#222)}}@supports(color:light-dark(red,red)){.gSAEA-d [role='listitem']:first-child>*:last-child{--content-bg-opaque:light-dark(rgba(34,34,34,0.7),rgba(34,34,34,0.7))}}.fgtiQY{min-height:1924px}@media(max-width:767px){.fgtiQY{display:none}}.eqQkhO{width:308px;height:100%;margin-left:auto}.eqQkhO.hidden{display:none}@media(max-width:999px){.eqQkhO{display:none}}.article-liveblog .dzfINj{background-color:#f7f7f7;background-color:light-dark(#f7f7f7,#222)}.jBkNwU{justify-content:center}.cumEve{justify-content:center}@keyframes hqVOOe1548920386{from{transform:translateX(0)}to{transform:translateX(-100%)}}@keyframes bReFEb1548920386{from{transform:translateX(100%)}to{transform:translateX(0)}}
Stay up to date with notifications from The Independent Notifications can be managed in browser preferences.
Not now Yes please
News Business UK economy shrank by 0.1% in three months to June as recession fears grow Economic downturn expected to get worse when energy price cap is raised in October
The Bank of England raised fears of a recession last week (PA Archive) Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference. Read more The UK economy shrank by 0.1 per cent in the three months to the end of June, amid warnings of an imminent recession.
The drop followed a 0.8 per cent rise in GDP in the first quarter of the year, the Office for National Statistics (ONS) said.
The latest figures show the service sector has been particularly badly hit, dropping by 0.4 per cent in the second quarter. A significant proportion of this fall came in health and social work, as less money was spent on the fight against Covid-19.
Darren Morgan, the ONS’ director of economic statistics, said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.
“Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.
“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the platinum jubilee.”
The economic downturn is expected to get worse, with the Bank of England and financial experts predicting that the UK could enter a recession later this year.
“While we see increasing signs of underlying weakness in the economy, we expect a more severe downturn to take place only from towards the end of this year,” Yael Selfin, chief economist at KPMG UK, said.
Responding to the latest GDP figures, the chancellor Nadhim Zahawi tried to strike a positive tone. “Our economy showed incredible resilience following the pandemic and I am confident we can pull through these global challenges again,” he said.
However, he acknowledged that the cost of living crisis was having a large effect on households across the country.
“I know that times are tough and people will be concerned about rising prices and slowing growth, and that’s why I’m determined to work with the Bank of England to get inflation under control and grow the economy.”
Predictions about energy price cap rises have added to inflation fears.
Earlier this week, Cornwall Insight, an energy consultancy, estimated that the average household’s annual energy bills will jump to £3,582 from October and £4,266 from January when Ofgem raises its price caps.
Experts have called on the government to do more to help vulnerable households, but new plans have yet to be laid out to help the public deal with spiralling costs.
Labour frontbencher Rachel Reeves accused the government of not having a plan to stabilise the economy.
“The economy shrinking. Inflation skyrocketing. It is clearer than ever that the Conservatives have lost control of the economy,” the shadow chancellor said.
“With the Bank of England forecasting a recession lasting the whole of next year, the Conservative leadership contenders need to stop playing to the gallery and start coming up with a serious plan to get Britain’s economy back on track,” she added.
Thank you for registering Please refresh the page or navigate to another page on the site to be automatically logged in Please refresh your browser to be logged in
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments