The UK economy unexpectedly shrank by 0.3% in August, according to official figures from the Office for National Statistics (ONS).
The drop was driven by a sharp decline in manufacturing and maintenance work, which slowed down the oil and gas sector, the ONS said.
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: “The 0.3% fall in monthly GDP for August 2022 is a warning sign that the economy was already stalling before the market turmoil of recent weeks.
“Our research indicates that business confidence is falling at an alarming rate. Volatility in the currency and bond markets following recent Government announcements will have only exacerbated this.
“The six months energy support package will have provided some breathing room for businesses facing eye-watering energy costs.
“To build business confidence, Government must rapidly provide more detail on its fiscal policies and supply side reforms, particularly at a time when businesses face the twin crises of rising interest rates and high inflation.”
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