The UK economic slump in the second quarter of the year has turned out to be better than anticipated although published readings suggest its first shutdown since the pandemic.
Most recently, the National Statistics Agency (ONS) reported a 0.1% drop in the second term in the UK's Gross Domestic Product (KDNK) following the 0.8% growth recorded in the first quarter.
Data readings also showed the economy slumped 0.6% in June impressed by the long sabbatical in conjunction with Queen Elizabeth II's silver jubilee.
However, the declines recorded in the second quarter and in June were better than expected, indicating the economic humidity in the country is not as bad as the market had expected.
The services sector fell as much as 0.4%, repelled by major falls in human health and social work activities after the Covid-19 outbreak eased.
In terms of usage, household spending fell 0.2%, offsetting the positive contribution of net trade.
This closure has indeed been expected by the Bank of England (BOE) which sees the UK will enter a slump by the end of this year with inflation soaring and energy prices expected to rise again in October.
Even so, the central bank is seen to continue to increase the benefit rate to continue efforts to bring inflation back to its target of 2%.
