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Britain’s Economy Shrank 0.1% in Second Quarter

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The British economy contracted slightly in the second quarter, losing momentum as the country experiences a deepening cost-of-living crisis and economists predict that a recession will start later this year.Gross domestic product fell 0.1 percent in April to June compared with the previous quarter, when the economy grew 0.8 percent, the Office for National Statistics reported on Friday.The biggest drag on growth in the second quarter was a reduction in health services as pandemic measures, such as coronavirus testing and vaccine administering, declined. This was only partly offset by growth in consumer-facing services, such as travel agencies, restaurants and hotels, and spending related to the Queen’s Platinum Jubilee.Britons are facing a bleak combination of stagnant or declining economic growth with one of the highest inflation rates among its rich-economy peers. In June, inflation climbed to 9.4 percent, the highest in 40 years, but isn’t expected to peak until it reaches 13 percent in October. The …

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