The UK economy shrank by 0.3% during April, according to latest Office for National Statistics (ONS) figures, as the cost of living crisis deepened. This fall follows a 0.1% decline in March and embarrassed several senior City economists who had predicted 0.1% growth.
ONS director of economic statistics Darren Morgan primarily blamed the dip on declining in health sector activity. “A big drop in this sector, due to winding down the test and trace scheme, pushed the economy into negative territory,” he said. “Manufacturing also suffered. with some companies telling us they were being affected by rising fuel and energy prices.”