The economy contracted by 0.1% in March after no growth in February, official figures show.
The UK economy shrank in March as households began to feel the impact of rising prices.
The economy contracted by 0.1% in March after no growth in February, the Office for National Statistics said.
In the first three months of the year the economy grew by 0.8%, which was driven by hospitality and travel industries recovering from coronavirus pandemic restrictions.
The Bank of England has warned the UK faces a “sharp economic slowdown”.
Prices are rising at their fastest rate for 30 years, driven by soaring fuel, food and energy costs.
The Bank of England has forecast that inflation – the rate at which prices rise – could reach more than 10% by the end of the year.
The ONS said a 15.1% fall in repairs of motor vehicles and motorcycles was the main factor behind the UK’s services sector shrinking in March.
However, it said the construction industry saw a strong month due to repairs needing to be carried out on homes and buildings following storms across in the UK in February.
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- 11 November 2021
