Sterling falls as the British economy shrinks more than expected

The British pound fell today after the British economy contracted at the largest pace in seven months in July as strikes and bad weather affected production. The British economy contracted by 0.5% in July, which is worse than expectations of 0.2% and also the largest decline in monthly production since December 2022. .

The pound sterling fell against the US dollar by 0.4% to 1.2442 dollars, its lowest level since June 8, and the euro rose against the pound sterling by 0.3% to 86.3 pence, its highest level in a month.

The Office for National Statistics said that other factors also affected British growth in July, including strikes in hospitals and schools, while wet weather hurt production in the retail and construction sectors.

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