UK economy shrinks as cost of living crisis bites

The Guardian says The UK economy unexpectedly shrank in April as soaring energy costs and supply chain disruption dragged down manufacturing amid the cost of living crisis, while the winding-down of the NHS test-and-trace service dragged on growth.

In figures highlighting the growing risk of recession, the Office for National Statistics said gross domestic product (GDP) fell by 0.3% on the month, after a 0.1% decline in March as consumers reined in their spending amid soaring household energy bills.

The scaling-back of the government’s Covid vaccination programme and pandemic test-and-trace was the biggest contributor to the monthly fall. Excluding this effect the economy probably grew, although analysts warned there were signs of weakness elsewhere as shortages of key materials and surging costs weigh on activity.

https://www.theguardian.com/business/2022/jun/13/uk-economy-shrinks-cost-of-living-gdp-inflation

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