Britain’s gross domestic product (GDP) fell again by 0.3% in August, after experiencing a small recovery the previous month, the Office for National Statistics (ONS) announced on Wednesday.
The economy shrunk in both production and services, the statistics institute informs. GDP rose slightly, by 0.1% in July, a figure that was revised down on Wednesday – a first estimate showed a rise of 0.2%.
Among the factors are the difficulties with energy supply
Among the factors weighing on GDP in August, “oil and gas production fell due to larger-than-usual routine summer maintenance operations in the North Sea,” ONS chief economist Grant Fitzner said on Twitter.
While economists expected the economy to stagnate, activity also fell in much of the manufacturing industry, in health, sporting events, but also for many service businesses such as hairdressers or hotels, according to data published on Wednesday.
In the second quarter, UK GDP rose 0.2%, according to a revised figure published at the end of September, while a first estimate had put it down 0.1%, dismissing immediate recession fears.
The “growth plan” in question.
Liz Truss’s government presented a “growth plan” at the end of September, consisting of a colossal support for electricity bills combined with major tax cuts, without these actions being fully costed or funded, causing panic in the financial markets. .
But even if the government manages to increase gross domestic product (GDP) slightly in the short term with its announcements, it will also complicate the fight against inflation given their size and the financing planned from debt, the IMF warned on Tuesday. …