UK recession looms after economy shrank 0.1% in three months to June

The UK economy contracted by 0.1 per cent between April and June, driven by a decline in spending by households and on fighting coronavirus, compared to growth of 0.8 per cent in the previous three months, the Office for National Statistics has said.

It was the first fall back since the pandemic, in part reflecting time off for Queen Elizabeth II's platinum jubilee celebrations, stoking fears that a recession might be around the corner.

The figure for June showed a 0.6 per cent decline because of the extra holiday at the start of the month, which followed surprise growth in May due to the celebrations.

The state of the economy, and how to tackle the cost-of-living crisis in particular, has been the main focus of the race to become the next UK prime minister.

With energy bills rising steeply, on top of increasing food and fuel prices, Rishi Sunak and Liz Truss have both been setting out plans for tax cuts or extra help for consumers.

READ MORE : https://www.thenationalnews.com/Business/UK/2022/08/12/uk-economy-shrank-01-in-three-months-to-june/