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LONDON DAILY ARCHIVE

Britain's Economy Contracts, Sparking Fresh Concerns Over Growth

Unexpected decline increases pressure on government

12 July 2025 · 23:57 UTC

Britain’s economy unexpectedly shrank in the latest monthly figures, dealing a blow to government hopes of a sustained recovery.

Analysts warn the contraction signals fragility in consumer spending and business investment, potentially increasing pressure for fiscal support or interest rate adjustments to stabilise growth.