The UK economy shrank more than expected in July as continuing strikes and wet weather stifled growth.
Data showed that gross domestic product fell by 0.5 per cent in the sharpest contraction since December last year.
Economists had been expecting a 0.2 fall for the month, following a 0.5 per cent monthly increase in June.
The Office for National Statistics said the “broader picture looks more positive” despite July’s decline.
“Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months,” said the ONS director of economic statistics, Darren Morgan.
“In July, industrial action by healthcare workers and teachers negatively impacted services, and it was a weaker month for construction and retail due to the poor weather.
“Manufacturing also fell back following its rebound from the effect of May's extra bank holiday.”
The ONS said all three key areas of the economy – services, construction and production – declined in July.
Lower activity in the service sector was the biggest driver of the latest monthly slump, according to the statistics body.
It said the human health and social work activities sector recorded a 2.1 per cent contraction for the month as a result of industrial action by NHS senior doctors and radiographers, as well an increase in strike days by junior doctors.
The education sector also recorded a 1.1 per cent fall for the month, as the sector was impacted by two days of strikes.
Elsewhere, the retail and accommodation sectors also dipped as consumer sentiment was held back by poor weather.
However, the arts and entertainment industry had a stronger month because of a busy schedule of sporting events and “increased theme park visits”.
Chancellor Jeremy Hunt said: “Only by halving inflation can we deliver the sustainable growth and pay rises that the country needs.
“But there are many reasons to be confident about the future.
“We were among the fastest in the G7 to recover from the pandemic, and the International Monetary Fund has said we will grow faster than Germany, France and Italy in the long term.”
However, Labour's shadow chancellor Rachel Reeves said the release of the data was "another dismal day for growth".
Alice Haine, Personal Finance Analyst at Bestinvest, the DIY investment platform and coaching service said Britain’s economy has remained resilient so far this year, despite multiple threats.
"The road ahead looks less forgiving, however, with interest rates now at their highest level in 15 years and expected to jump again by 25 basis points when the Monetary Policy Committee meets again later this month – a move designed to constrain demand and expenditure in the economy," she added.
Craig Erlam, Senior Market Analyst at OANDA said it is doubtful whether the data will "sway" the Bank of England when it meets next week to discuss interest rates, particularly against the backdrop of strong wage growth, as was reported yesterday.
"Markets are now pricing in a rate hike at around 75 per cent, which seems overly cautious to me but then, perhaps Andrew Bailey's words last week are continuing to ring in the ears of traders.
"The Governor and his colleagues indicated the discussion will be more balanced than people seem to think which suggested a hold is very much on the table this month.
"That seems a little far-fetched at this stage and I think the words are probably intended for a little further down the line in November but then it wouldn't be the first time the BoE has surprised us. That said, it also wouldn't be the first time they've hinted at something and not followed through."
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
The five pillars of Islam
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
KILLING OF QASSEM SULEIMANI
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Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
