In the UK, GDP unexpectedly fell sharply in July – Kommersant
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Today, September 13, the British Office for National Statistics (ONS) reported, that at the end of July the country’s GDP decreased by 0.5%. A month earlier, in June, the British economy grew by the same 0.5%. The July contraction was led by a noticeable decline in activity in the main sectors – services and construction (by 0.5%) and industrial production (by 0.7%).
Interviewed Reuters experts expected a more moderate decline – by 0.2%. Such a noticeable decline in British GDP is associated with several factors. Thus, mass strikes by British doctors and teachers demanding higher wages in the face of rising inflation led to a deterioration in performance in the service sector.
The decline in activity in construction and retail trade was associated with downpours that hit the country – in terms of rainfall, July took 6th place on record in the UK, which dates back to 1836. Back in mid-August, UK retailers reported of a larger-than-expected decline in retail sales in July due to unfavorable weather conditions.
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