UK economy stalls in July after June expansion
After 0.4% growth in June, the UK economy recorded zero growth in July, highlighting sectoral imbalances and mounting pressure on government ahead of the Autumn Budget.
The UK economy recorded no growth in July, the Office for National Statistics (ONS) said, following a 0.4% rise in June.
Over the three months to July, GDP grew by 0.2% compared with the previous quarter, reflecting underlying momentum despite monthly volatility.
Sector breakdown
The service sector led activity with strong contributions from health services, computer programming and office support. Manufacturing output, however, fell, offsetting gains elsewhere.
Budget implications
Chancellor Rachel Reeves will set out tax and spending plans in the Autumn Budget on 26 November amid speculation of tax rises to meet fiscal targets. Yael Selfin, chief economist at KPMG UK, warned that growth could slow in the second half of the year as temporary factors fade and budget delays weigh on business investment.
The Treasury said it is focused on reversing years of underinvestment to boost growth. Shadow Chancellor Sir Mel Stride criticized the government’s performance, pointing to high borrowing costs as evidence of waning confidence.
Despite a three-month rise in GDP, July's stagnation underscores the challenge of sustaining growth amid sector imbalances and fiscal uncertainty.
This topic was reported by BBC.
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