STORY: Britain could be sliding closer to recession.
New figures out Monday (June 13) showed the country’s economy unexpectedly shrank in April.
GDP contracted by 0.3%, when economists had expected it to eke out growth.
The Office for National Statistics said that might have been the case, but for reduced government spending on health crisis measures.
Rising prices are the big worry now, and not just for shoppers.
Many firms said increases in the cost of production had affected their business.
Meanwhile, soaring energy costs and a recent tax increase are squeezing spending power for families.
Finance minister Rishi Sunak says the UK isn’t alone in facing such problems.
He’s already unveiled more support for households, and is expected to announce further measures later in the year.
However, the outlook for growth looks grim.
Monday saw the Confederation of British Industry warn of stagnation and possibly a recession.
That may not stop the Bank of England from raising rates on Thursday (June 16) though.
Policymakers feel compelled to act, with inflation forecast to exceed 10% in the final quarter of the year.
Most economists expect another quarter-percentage point increase.