# Sterling drops after UK economy contracts by more than expected
Author: Pal sinha, Barnali
Author URL: https://startupobserver.com/author/pal-sinha-barnali/
Published: 2023-09-13
Category: Headlines
Category URL: https://startupobserver.com/category/headlines/
Meta Title: Sterling drops as UK economy contracts more than expected
Meta Description: British pound declines against dollar & euro as economic output shrinks in July. Stay updated on latest forex news with our articles.
URL: https://startupobserver.com/sterling-drops-after-uk-economy-contracts-by-more-than-expected/

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LONDON (Reuters) – The British pound declined against the [dollar](https://startupobserver.com/dollar-jumps-as-u-s-job-gains-wage-growth-beat-expectations/) and euro on Wednesday after data showed British economic [output](https://startupobserver.com/uk-factory-orders-fall-again-but-by-less-than-in-july-cbi-survey-shows/) 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](https://startupobserver.com/sterling-hits-five-month-high-against-euro-before-boe-decision/) 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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