UK economy shrinks in 2nd quarter, sharpening recession fear

LONDON (AP) — The United Kingdom’s economy shrank in the three months to June. It’s a smaller-than-expected contraction but adds to jitters about the rocky months ahead. The Office for National Statistics said Friday that Britain’s gross domestic product fell by 0.1% between April and June, down from 0.8% growth in the previous quarter. Health spending was the biggest contributor to the fall, as the government scaled down coronavirus testing, contact tracing and vaccination programs. Analysts say the decline didn’t necessarily mean the start of a recession, often defined as two quarters of economic contraction but not an official designation. The Bank of England, however, says a recession is likely later this year as a cost-of-living crisis fueled by inflation worsens.