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The U.S. was the worst-performing of the major Group of Seven economies in the second quarter, the latest data show.
The U.K. Office of National Statistics on Friday released the G-7 comparison alongside reporting the British economy shrank by a 0.1% rate in the April-to-June period.
On the quarterly basis that most countries outside the U.S. employ, the American economy fell by 0.2% in the second quarter. Canada had the strongest showing, with its economy accelerating by 1.1%, and the Italian and French economies also grew while Germany’s stagnated.
Japan is set to report its GDP numbers on Monday, with an economist poll from FactSet Economics expecting growth of 0.8% quarterly, or 2.5% annualized.
The U.K. numbers don’t necessarily show an economy heading to recession. The Platinum Jubilee celebration weighed on output in June, when GDP contracted by 0.6%.
Analysts also noted the unusual drag from COVID-19, as the winddown of vaccination and testing programs reduced activity in health and social work.
“Uncertainty regarding the extent of the disruption caused by the Jubilee will mean we will have to wait for August’s GDP data to accurately assess the economy’s underlying momentum. For what they’re worth, the latest business surveys suggest that the recovery has slowed and probably will stall over the next couple of months,” said Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics.
The U.K. is facing a cost-of-living crisis as energy costs spiral. Outgoing Prime Minister Boris Johnson said it will be up to the next government to determine what to do about it, after meeting energy executives on Thursday.
