UK economy to fall into recession by autumn: BoE

Last week, the Bank of England predicted that the UK will fall into a recession by the autumn and could have more than a year of subsequent economic contraction.
 
Although there was some growth in April, May and June in service activities such as travel agencies as Covid-19 restrictions were lifted, the ending of the test and trace initiative dealt a blow to the economy.
 
Darren Morgan, director of economic statistics at the Office for National Statistics said "These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee."
 
There was a large fall in June of 0.6%, partly caused by the significant reduction in services spending as coronavirus test and trace was phased out, and partly because the Platinum Jubilee meant that there were two fewer working days that month.
 
The UK's economic performance was worse in the second quarter than that of countries such as Canada, Italy, France, and Germany, with underlying data showing that economic pressures were beginning to take hold on consumer spending.
 
Private consumption fell by 0.2% in the second quarter - an indication that record high prices for some products were stopping people from spending.