"Strikes and Wet Weather Cause UK Economy to Shrink at Fastest Pace in Seven Months"

The UK economy contracted by 0.5% in July, the fastest pace in seven months, due to declines in services output, strikes, and wet weather. This unexpected dip raises concerns about a potential mild recession, with major investment banks revising down their growth forecasts. Despite the contraction, some economists believe the economy is still growing, albeit at a slow pace. The Bank of England may still raise interest rates next week, despite the weakening economic indicators. The pound declined against the US dollar and euro in response to the GDP figures.