U.K. Economic Growth Slows, Raising Recession Concerns

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Britain’s economy grew at the slowest pace in a year during the first quarter as retailers and manufacturers were hurt by supply disruptions and higher prices, raising concerns that the country may be headed for a recession, the Associated Press reported. Gross domestic product, the broadest measure of economic activity, rose 0.8% in the period, slowing from 1.3% in the previous quarter, the Office for National Statistics said Thursday. Monthly estimates indicate GDP shrank by 0.1% in March. The figures “suggest the economy had less momentum than we thought even before the full hit from the cost of living crisis has been felt,” said Paul Dales, chief U.K. economist at Capital Economics. “The risk of recession has just risen.” Growth is slowing as manufacturers and retailers struggle to overcome supply bottlenecks following the COVID-19 pandemic and the war in Ukraine fuels rising food and energy prices. Retail sales figures show British consumers are already reducing spending as economists forecast the U.K. will see the biggest drop in living standards in more than six decades this year. Read more.