‘Recession may have begun’ as UK economy shrinks by 0.5% in July, GDP figures show

The economy shrank by a surprise 0.5 per cent in July, raising the spectre of recession heading in to an election year.

The month-on-month fall in gross domestic product reversed June’s increase of 0.5 per cent and was the sharpest decline since December, with services, production and construction all retreating.