Britain’s economy grew less than expected in July, when it expanded 0.2% from June, with electricity output possibly reflecting rising energy tariffs, official data showed on Monday.
A Reuters poll of economists had pointed to month-on-month growth of 0.4% in July.
Gross domestic production fell 0.6% in June, which included two holidays to celebrate Queen Elizabeth II’s 70th birthday on the British throne.
A spokesman for the Office for National Statistics (ONS) said the impact of the holidays was not a major factor in July.
In the three months to July, GDP remained stable compared to the previous three-month period.
“Anecdotal data suggest that there may be some signs of changes in consumer behaviour and lower demand in response to rising prices,” the ONS said in relation to the fall in power generation.
Last month, the Bank of England forecast that Britain would enter recession by the end of 2022 and not exit it until early 2024, due in large part to the blow to living standards from rising energy prices.
Last week, the new prime minister, Liz Truss, announced huge aid to households promising to cap energy prices, reducing the risk of a serious blow to the economy, albeit at a cost of 100 billion pounds ($116.16 billion) or more to public finances, which are already on edge.
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