UK Economy Contracted in 2Q As Inflation and Ukraine War Takes Toll

By Maria Martinez

The U.K. economy contracted in the second quarter, as inflation and uncertainty from Russia’s invasion of Ukraine took their toll on the economy.

U.K. gross domestic product fell 0.1% from April to June compared with the preceding quarter, the Office for National Statistics said Friday, easing from the 0.8% expansion registered in the first quarter. Economists polled by The Wall Street Journal expected the economy to contract by 0.2%.

There was a 0.2% decrease in household consumption in the second quarter, offset by a positive contribution from net trade, the ONS said.

In June, the U.K. economy contracted by 0.6% compared with the previous month, the data showed.

The United Kingdom is now projected to enter recession from the fourth quarter of this year, according to the Bank of England.

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