30.4 C
Kuala Lumpur
spot_img

Recession risk rises as economy unexpectedly shrinks

Date:

Share:

The UK economy unexpectedly shrank in August, strengthening predictions that it will fall into a recession.

The surprise 0.3% drop came as factories and consumer-facing businesses struggled, according to official figures.

Analysts thought the economy would stall in August but not shrink as costs mount for businesses and households.

Prices are rising at their fastest rate for 40 years, eating into people’s budgets, and outpacing growth in pay.

In normal times, a country’s economy grows and on average, people become slightly richer as the value of the goods and services it produces – its Gross Domestic Product (GDP) – increases.

But sometimes their value falls, and a recession is usually defined as when this happens for two three-month periods – or quarters – in a row, and it marks a sign the economy is performing badly.

The Bank of England has previously said that it expects the UK to fall into a recession by the end of the year.

The drop in the monthly figure for August was driven by a sharp decline in manufacturing and maintenance work, which slowed down the oil and gas sector, the ONS said.

It marked a fall from July, when the UK economy grew by 0.1%.

Langgan Majalah Forex Malaysia

━ more like this

US economy grows steadily through fall, inflation eases a bit: Fed

A routine Federal Reserve (Fed) survey has found that the US economy grew steadily through the fall and inflation eased a bit, but many...

Luno menutup dompet ‘simpanan’ kripto – kurang daripada 12 jam notis

Penyedia pertukaran kripto berpengkalan di Afrika Selatan, Luno menutup "dompet simpanan" yang mempunyai faedah, secara literal dalam sekelip mata.Pada petang Rabu, ia memberitahu pelanggan...

MAJALAH FOREX MALAYSIA EDISI KE 208 SEDIA UNTUK DIMUAT TURUN PERCUMA

Majalah Forex Malaysia kembali lagi minggu ini dengan edisi ke 208.Dapatkan naskah MFM edisi ke 208 ini secara percuma sahaja!.Selamat Maju Jaya kepada semua.Kita...

EUR/GBP jatuh ke paras terendah mingguan baharu, kekal di atas paras sokongan kukuh 0.8575-0.8570

EUR/GBP melayang lebih rendah untuk sesi kedua berturut-turut dan mencabar sokongan 0.8575-0.8570.Angka inflasi zon Euro yang lebih lembut pada hari Rabu memberi kesan kepada...

Stock market crash, higher inflation coming in 2023 despite strong US economy

The Federal Reserve has spent the past year trying to break the US economy. In the face of scorching inflation, the Fed rapidly hiked interest rates in...
spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here