Britain's economy expanded less than feared in June, when public holidays were expected to pose a major drag with sectors most exposed to the worsening cost of living crisis, such as shopping and restaurants.
Spending for the second quarter as a whole is still buoyant, however, with Britain expected to suffer a lengthy slump by the end of this year in the face of soaring inflation and rising profitability.
The National Ranking Department said crude domestic output (KDNK) fell as much as 0.6% in June, the biggest close since January 2021 but less badly than the 1.3% decline forecast by a Reuters economist review.
The month of June had two bank holidays to celebrate Queen Elizabeth's Platinum Jubilee but most of the obstacles to KDNK in June came from the Covid-19 constraints.
Analysts believe KDNK is likely to recover in July. Data on Friday showed increasing weakness in economic sectors following inflation readings hitting a 40-year high following the war in Ukraine.
The economy is estimated to be 0.9% above pre-covid outbreak levels in February 2020 but the user-facing service output is 4.9%. Finance Minister Nadhim Zahawi said the figures show "true resilience" in the private sector, but many economists predict the decline is headed for a slump.
Last week the Bank of England predicted Britain would enter a slump by the end of 2022. For the second quarter as a whole, the ONS said the economy contracted by as much as 0.1%, compared to forecasts for a decline of 0.3%.
Britain has lagged behind the United States, Italy and France in recovery from the Covid-19 pandemic, comparing second-quarter economic output to the end of 2019.
