UK economy contracts in April as inflation weighs

• Output in the services, manufacturing, and construction sectors decreased.
• It is the first time that all major sectors have contributed negatively to a monthly GDP estimate.
• The ONS cited the effect of price rises and supply chain shortages as the cause for the decrease.

Official data released Monday indicated that British economic output fell for the second month in a row in April, driven down by decades-high inflation.

According to the Office for National Statistics, GDP decreased 0.3 percent in April after falling 0.1 percent in March.

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Output in the services, manufacturing, and construction sectors decreased, marking “the first time that all major sectors have contributed negatively to a monthly GDP estimate since January 2021,” according to the ONS, fueling worries of a recession.

“Businesses continued to report the effect of price rises and supply chain shortages,” according to the ONS.

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