UK Economy Falls Worse Than Expected!

<p>&nbsp;The UK economy contracted more severely than expected in July, pushing the pound lower.</p><p><br /></p><p>Most recently, the Office for National Statistics (ONS) reported UK gross domestic product fell by 0.5% month-on-month in July compared to expectations for a contraction of 0.2%.</p><p><br /></p><p>It was the biggest decline recorded so far this year after recording 0.5% growth in June.</p><p><br /></p><p>According to the ONS data, all the main sectors of the economy namely services, manufacturing and construction showed a decline in July.</p><p><br /></p><p><br /></p><p>This is a sign that the UK economy is weakening, which may be worse than expected by the Bank of England (BOE).</p><p><br /></p><p>The market is now awaiting another economic indicator, namely UK inflation data to be published next week (Wednesday) ahead of the BOE's policy meeting on Thursday.</p><p><br /></p><p>Meanwhile, the UK's chief economist at Capital Economics described the fall in the latest GDP data as indicating that a recession in the country may have begun.</p><p><br /></p><p>The effect on the currency can be seen in the lower drop of the pound to the price level of 1.2445 against the US dollar.</p>