U.K. Economy Shrank in Second Quarter as Inflation Hit Households

LONDON—The U.K. financial system contracted within the second quarter as households dealing with hovering inflation in the reduction of on spending and applications to comprise the unfold of Covid-19 have been wound down, presaging robust occasions for an financial system that’s anticipated to enter a prolonged recession.

Britain’s statistics company stated Friday that gross home product—a broad measure of the products and companies produced in an financial system—fell 0.1% within the three months via June. Economists anticipated a 0.2% lower in output, following a 0.8% rise within the first quarter.