UK economy unexpectedly shrinks in August, falls by 0.3%
2022.10.12 02:30
© Reuters. People cross Waterloo Bridge during the evening rush-hour with skyscrapers of the City of London financial district seen behind in London, Britain, October 10, 2022. REUTERS/Toby Melville
LONDON (Reuters) – Britain’s economy shrank by 0.3% in August from July, hit by weakness in manufacturing and by maintenance work which slowed the oil and gas sector, official data showed on Wednesday.
A Reuters poll of economists had pointed to zero growth in August.
“The economy shrank in August with both production and services falling back, and with a small downward revision to July’s growth the economy contracted in the last three months as a whole,” ONS Chief Economist Grant Fitzner said.
Fitzner highlighted a “notable decrease” in the manufacturing sector and a greater level than usual of maintenance in the North Sea oil and gas sector which slowed output.
“Many other consumer-facing services struggled with retail, hairdressers and hotels all faring relatively poorly,” Fitzner said.
