With an unexpectedly poor GDP reading, Britain’s economy contracted at the fastest pace so far this year, as strikes in schools and hospitals weighed on output, according to official data released Wednesday.
The Office for National Statistics said gross domestic product (GDP) fell 0.5% for July compared to June. That was worse than every forecast offered in a Reuters survey of economists which had forecast a contraction in gross domestic product of 0.2%
The data showed that every major sector of the economy declined, possibly by a greater amount than the the Bank of England had been expecting prior to its September interest rate meeting.
On Tuesday, newly released data had shown unemployment rising faster than the regulator had expected, however the central bank remained concerned that strong growth in wages could continue to fuel a rise in prices.
The biggest driver of the 0.5% fall in services was the health sector, according to the ONS, which cited strikes by senior and junior doctors as the cause underlying the cancellations of appointments. There were also strikes in schools in England.
Retail and construction companies saw performance hurt by unusually wet weather in July.
The data released Wednesday did not factor in recent, substantial upward revisions to the economy of Britain to the end of 2021.