UK Economy Shrinks in July Amid Bad Weather and Doctors’ Strikes

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LONDON (AP) — The British economy shrank by 0.5% in July amid a series of strikes, particularly by doctors at the start of their careers, and unseasonably wet weather, official figures showed Wednesday.

The Office for National Statistics said the strikes by so-called junior doctors weighed on health sector activity, while the sixth wettest July on record hit retailers after a buoyant June, when business was brisk as a result of warm weather.

Most economists downplayed the prospect that the British economy would fall into recession as monthly growth figures have been yo-yoing up and down as of late. Still, growth is expected to stay tepid.

James Smith, developed markets economist at ING, said a recession “can’t be ruled out” but that the economy “seems to be still growing, albeit fractionally.”

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Most economists think the bank will raise its main rate by a further quarter of a percentage point to a fresh 15-year high of 5.5%.

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