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Concerns about the UK economy grow as higher prices bite

Concerns about the UK economy grow as higher prices bite

June 13, 2022
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Concerns about the UK economy grow as higher prices bite

by Yashvardhan Sharma
June 13, 2022
in News
0
Concerns about the UK economy grow as higher prices bite

Fears about the UK economy’s prospects have grown after it shrank again in April, with businesses feeling the impact of rising prices.

According to the Office for National Statistics, the economy contracted by 0.3 percent in April after contracting by 0.1 percent in March.

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The April figure was lower than expected, marking the first time the economy has contracted for two months in a row since Covid’s strike.

Some analysts have warned that the UK could enter a recession.

Rising prices have impacted both households and businesses, with prices rising at the fastest rate in 40 years due to record-high fuel and energy costs.
The cost of filling up an average family car with petrol recently hit £100, and there have been signs that people are cutting back spending as costs rise.
April marked the first time since January 2021 that all three major sectors of the economy – services, manufacturing, and production – shrank.

According to the ONS, the main driver of April’s contraction was the closure of the NHS’s Covid Test and Trace operation.

It also stated that some businesses were still struggling with the effects of price increases and supply chain shortages.

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