THE ECONOMY shrank again in April as businesses felt the impact of price rises and the NHS Covid Test and Trace operation was wound down.
The economy shrank by 0.3 per cent in April following a 0.1 per cent in March according to official figures.
April was the first time all main sectors of the economy – services, manufacturing and production – had shrunk since January 2021.
The Bank of England has warned the UK faces a ‘sharp economic slowdown’, and prices are rising at their fastest rate for 30 years, driven by record-high fuel and energy costs.
Bank chiefs have forecast inflation – the rate at which prices rise – could reach more than 10 per cent by the end of the year.
