The UK economy shrank surprisingly sharply in July as the health sector was hit by further industrial action and retailers were knocked by wet weather.Data from the Office for National Statistics showed that gross domestic product contracted by 0.5% in July.It is the heaviest decline since December last year and comes amid concerns that recent interest rises and persistent inflation could stifle economic growth.

The UK economy shrank surprisingly sharply in July as the health sector was hit by further industrial action and retailers were knocked by wet weather.Data from the Office for National Statistics showed that gross domestic product contracted by 0.5% in July.It is the heaviest decline since December last year and comes amid concerns that recent interest rises and persistent inflation could stifle economic growth.