UK Economy Contracts By Worse-Than-Expected 0.5% In July: Report

British economic output contracted by a larger-than-expected 0.5% in July, figures from the Office for National Statistics showed on Wednesday, marking the biggest drop this year.

A Reuters poll of economists had pointed to a contraction in gross domestic product (GDP) of 0.2% from June.

All major sectors of the economy - services, manufacturing and construction - declined in July, the data showed.

Wednesday's data do not include recent, substantial upward revisions to the performance of Britain's economy up to the end of 2021.

The data were released against a backdrop of recession fears due to inflation headwinds still facing households and businesses.

(With Inputs from Reuters)