The economy shrank sharply in August as swathes of British industry went into reverse, raising renewed fears of recession following a brief reprieve from a growth spurt in July.
GDP dropped by 0.3pc in the month, the Office for National Statistics said, following growth of 0.1pc in July – below the 0.2pc it initially estimated.
Manufacturing output fell by 1.6pc, with the production of pharmaceuticals, transport equipment and metals all down particularly sharply.
It means factories are still producing 2pc less now than they were before the pandemic.
Even the oil and gas industry, which should be benefitting from bumper prices and high demand for its output given the international energy crunch, struggled.
An unusually large number of shutdowns for maintenance meant production plunged by more than 10pc on the month.
Services output, which dominates the British economy, slipped by 0.1pc in August and is now 0.2pc below its pre-Covid level.
Output of the nation’s health and social work sector fell more than 1pc with fewer operations in the month. The cost of living crisis is also biting, with arts, entertainment and recreation down 5pc.
Grant Fitzner, chief economist at the ONS, said there are some bright spots in the economy.
“On the positive side, these falls were partially offset by stronger than usual summer performance from many professional services such as lawyers, accountants and architects,” he said.
Follow the latest updates below.
