'Things are only going to get worse' as UK economy contracts in March

UK GDP down 0.1%

The UK economy shrank for the first time this year, falling 0.1% as the cost of living crisis takes hold under the shadow of spiralling inflation, higher rates and the Russian invasion of Ukraine.

Both the monthly and quarterly reading, which indicated growth of 0.8%, came in under consensus, and investors are concerned that the economy's contraction had begun so soon in the year. Emma Mogford, manager of Premier Miton Monthly Income, noted the "concerning data point", adding the pressure on growth "may get worse before it gets better". Head to Head podcast: Stagflation v Recession The most "worrying" part of the data release, according to Dan Boardman-Weston, CEO and CIO at BRI Wealth Management, is the contraction of the service sector by 0.2%, which reflects the view that...