UK’s pandemic recovery halts with contraction in second quarter

With inflation soaring and energy prices on course for another eye watering jump in October, the Bank of England expects the UK to enter a recession at the end of this year.

The UK economy shrank in the second quarter for the first time since the pandemic, driven by a decline in spending by households and on fighting the coronavirus.

Gross domestic product fell 0.1% after an 0.8% gain in the first quarter, the Office for National Statistics said Friday. A decline in Covid testing and vaccinations as well as slower retail sales were the biggest drivers. Manufacturing also fell.