U.K. Economy Shrinks as Inflation Hits Households

Updated Aug. 12, 2022 1:27 pm ET

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LONDON—The U.K. economy contracted in the second quarter as households facing soaring inflation cut back on spending and programs to contain the spread of Covid-19 were wound down, presaging tough times for an economy that is expected to enter a lengthy recession.

Britain’s statistics agency said Friday that gross domestic product—a broad measure of the goods and services produced in an economy—fell 0.1% in the three months through June. Economists expected a 0.2% decrease in output, following a 0.8% rise in the first quarter.

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This article was written by and originally published on www.wsj.com