Watch: Sunak faces Starmer at PMQs as UK economy shrinks

Watch as Rishi Sunak faces Sir Keir Starmer at Prime Minister's Questions (PMQs) on Wednesday, 13 September.

Wednesday's questions came as data showed that the UK economy shrank surprisingly sharply in July.

Analysts predicted a 0.2 per cent decline in gross domestic product (GDP), but it contracted by 0.5 per cent as retailers and construction projects were knocked by wet weather.

The figures are the heaviest decline since December 2022.

All three key areas of the economy - services, construction and production - declined in July, according to the Office for National Statistics (ONS).

The human health and social work activities sector recorded a 2.1per cent contraction for the month as a result of industrial action from NHS senior doctors and radiographers, as well an increase in strike days from junior doctors, the ONS said.

The education sector, which was impacted by two days of strikes, recorded a 1.1 per cent fall for the month.

“Our initial estimate for July shows that GDP fell; however, the broader picture looks more positive, with the economy growing across the services, production and construction sectors in the last three months," ONS director of economic statistics Darren Morgan said.