Strikes and wet weather cause UK economy to shrink

The latest figures from the Office of National Statistics show the UK economy shrank more than expected in July, with the ONS pointing to strikes and wet weather as factors. 

The wet weather hit the construction and retail industries, causing the economy to contract by 0.5%. 

The figures were worse than what had been predicted and continue a trend of weak economic growth in the UK. 

But the ONS said the “broader picture” for the country looked “more positive”.

Darren Morgan, director of economic statistics at the ONS, said that while July saw the economy shrink, output across the services, production and construction sectors had grown 0.2% in the three months to July.

He said “a busy schedule” of sporting events and increased theme park visits had provided a slight boost to the economy.

Chancellor Jeremy Hunt said the latest economic figures showed “many reasons to be confident about the future” and that the UK economy was now on course to grow faster than Germany, France and Italy.