The UK economy logged only a marginal contraction in the second quarter despite the challenges posed by the rising interest rates and high inflation that is squeezing real income.
Gross domestic product shrank 0.1 percent from the first quarter, when output had advanced 0.8 percent, the Office for National Statistics said Friday. Nonetheless, the pace of contraction was slower than the 0.2 percent drop expected by economists. The Bank of England had projected the economy to enter recession later this year and to contract throughout next year. The bank estimated a quarterly fall of 0.4 percent in the third quarter of 2022.
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Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.