UK economy shrinks in July as GDP falls 0.5% – what it means for your money

THE UK economy shrunk by 0.5% in July, the latest figures from the Office for National Statistics (ONS) show.

It came after a 0.5% increase in June, easing fears at the time that the country could fall in to recession.

GDP measures the value of goods and services produced in the UK.

It also estimates the size of and growth in the economy.

ONS director of economic statistics Darren Morgan said: “Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months.

“In July, industrial action by healthcare workers and teachers negatively impacted services and it was a weaker month for construction and retail due to the poor weather. Manufacturing also fell back following its rebound from the effect of May’s extra Bank Holiday.”