Britain's economy shrinks more than expected in July

Britain's economic output shrank by a larger-than-expected 0.5 per cent in July after growth of 0.5 per cent in June, the Office for National Statistics (ONS) said on Wednesday.

Output of all three main sectors dropped in July, reports Xinhua news agency.

The ONS said the services and construction sectors fell by 0.5 per cent, and production went down by 0.7 per cent.

According to the ONS, the decline in the services output was the main contributor to the fall in GDP in July.

"In July, industrial action by healthcare workers and teachers negatively impacted services, and it was a weaker month for construction and retail due to the poor weather. Manufacturing also fell back following its rebound from the effect of May's extra Bank Holiday," said Darren Morgan, director of economic statistics at the ONS.

"However, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months," Morgan noted.

The ONS data showed Britain's GDP increased by 0.2 per cent in the three months to July, with growth in all three main sectors.