UK economy unexpectedly shrinks in August sparking recession fears

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The UK economy contracted for the first time in two months in August.

The Office for National Statistics reported that the economy grew in July.

Economic growth was expected to stall due to soaring costs.

According to the Bank of England, the UK will fall into recession by the end of the year.

In normal times, a country's economy grows and people get richer as the value of the goods and services they produce increases.

When their value falls, a recession is usually defined as when the economy performs badly for two quarters in a row.

The economy fell in the quarter to August as the three-month growth figure continued to slow.

The fall in the monthly figure for August was caused by a decline in manufacturing and maintenance work which slowed down the oil and gas sector.

ONS Chief Economist Grant Fitzner said that a lot of other businesses were faring poorly.

The economy contracted in the last three months of the year, with both production and services falling back, and with a small downward revision to July's growth.

After the UK hosted the Women's Euro Championship in July, sports events didn't generate the same amount of economic value.