# Sterling drops after UK economy contracts by more than expected
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-09-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Sterling drops as UK economy contracts more than expected
Meta Description: British pound fell against USD and EUR after July economic output shrank by 0.5%, worst since Dec. 2022. Stay updated on GBP performance at Reuters.
URL: https://financedigest.com/sterling-drops-after-uk-economy-contracts-by-more-than-expectedhtml

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# Sterling drops after UK economy contracts by more than expected

LONDON (Reuters) – The British pound declined against the dollar and euro on Wednesday after data showed British economic output contracted by more than expected in July.

Sterling was last down 0.3% against the dollar at $1.2459, on track for its biggest daily drop in a week.

The euro rose 0.1% against the pound to 86.24 pence, its highest level in a month.

The UK economy contracted by 0.5% in July, the Office for National Statistics said, worse than expected contraction of 0.2% and the largest drop in monthly output since Dec. 2022.

(Reporting by Samuel Indyk; Editing by Amanda Cooper)


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