Crisis for Rachel Reeves as UK economy completely fails to grow | UK | News
In July, the UK economy received a new blow to Rachel Reeves and Labour in July. According to the National Statistics Office, there was no growth in gross domestic product (GDP) last month after 0.4% expanding in June.
The recession arrived after the withdrawal of the manufacturing sector activity by 1.3% – the biggest contraction since July 2024. This has withdrawn growth in the wider economy and the service sector increased by 0.1% thanks to a 0.6% increase for 0.6% increase for retail and construction. Responding to the news, Tories claimed that Ms. Reeves’ economic strategy left the Britain poor, “the reform, the British Labor Party’s” British bank “.
Liz McKkeown from Ones said: “The decreases of production stem from the wide -based weakness between manufacturing industries.”
In response to the latest GDP data, a treasure spokesman said: iz We know that there is more to do to increase growth because our economy feels stuck, even if our economy is broken.
“This is determined to reverse our change plan.
“We are making progress: This year, growth was the fastest growth in the G7, interest rates have been cut five times since the election, and real wages have increased faster than under the last government.
“There is more to build an economy that works and rewarded for working people.”
Ones said that the real GDP grew by 0.2% by July 2025 up to three months, but according to April 2025, only in June 2025, 0.3% and 0.6% in May 2025.
Shadow Chancellor Mel Stide said: “While the country is away from the problems faced, the growth does not slow down in the last month.
“As the government went from one scandal to another, borrowing costs have recently reached the highest level of 27 years-a voting that did not rely on the worker, enabled the painful tax to rise.
“It is not surprising that Starmer controls Reeves on the budget. However, it is not enough to leave it – it should also reject the unsuccessful economic approach that leaves England poorer.”
Reform wrote in the UK Deputy Leader Richard Tice X: “Dire GDP monthly estimation. Zero growth and trend Down.
“Labor makes the British bank: Leaving control, borrowing, borrowing cost, bond markets tense, growth has disappeared.
“Only @refformparty_uk can save England.”
Martin Beck, the chief economist of the WPI strategy, said, “The stagnation of July underlines the obstacles faced by the economy.
“Inflation is disturbingly adhesive, interest rates are still restrictive in the region and financial ‘black holes’ speaks and the budget risks that are safe in the budget risks of November.”
GDP is used as an economic health indicator with growth or deficiency to measure economic progress.
It measures how much it is produced in a certain period, how much it is spent, and how much it has been gained in the economy and how it has changed over time.
