UK economy flatlined in July after sharp contraction in manufacturing
In July, the UK economy balanced a bumper month in the production sector for a year and a bumper month in High Street.
National Statistics Office (Ones), in June against the growth of 0.4 percent in July Gross Domestic Product (GDP), said zero growth per month.
The manufacturing sector came after 1.3 percent of the activity with withdrawal – the biggest contraction since July 2024. This has taken back the growth in the wider economy and the service sector increased by 0.1 percent thanks to its growth of 0.6 percent in retail and construction.
Ones Economic Statistics Director Liz McKEANANEN said: “The growth in the economy continued to slow down in the last three months as a whole. While the service growth continued, production increased further.
“Services performed well in health, computer programming and office support services, and production decreases were directed by a wide -based weakness among manufacturing industries.
“In the last month, GDP did not grow with services and construction balances with decreases in production.
“Falls in production stem from the wide -based weakness between manufacturing industries.”
The service output increased by 0.4 percent until July and 0.6 percent of the construction and contributed to an increase of 0.2 percent for the economy in the summer period.
However, this means a successive period of slowing down, as an expert’s words have come to the point of “stopping”. Quilter Investment Strategist Lindsay James said that even areas that have grown in the last three months have slowed down – a direct result of the government’s increasing costs for employers.
“After the first half of the year, the economic growth of the UK is slowly standing once again, James James said.
“GDP did not grow one month monthly in July and slowed down to 0.2 percent in three months. This increase was primarily directed by the services and construction sectors, but the production output has fallen. However, the growth in these sectors is slowing down and the actions of the labor government government, the increase in the employing national insurance contributions, the employment of the business presenter has a significant effect.
“Considering the precarious position of the chancellery, the insecurity of public finances, now the end of the summer and the sleep of the economy, we encounter the uncertainty that continues to the budget in November.
In the latest figures, a treasure spokesman said: uz We know that there is more to do to increase growth, because even though our economy is broken, it feels stuck.
“This is the result of the investments that we are determined to reverse our change plan. We make progress: This year, the fastest growth in the G7, interest rates have been cut five times since the elections, 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. So we cut unnecessary bureaucracy, transform the planning system to buy the UK building, and invest billions of pounds to affordable houses, size and local.”
On the other hand, Sir Mel Stide, the Shadow Chancellor of Exchequer, said: “Any economic growth is accepted – but this government is moving away from the problems faced by the country.
“As the government went from one scandal to another, borrowing costs have recently reached a 27 -year highest level – a voting that did not rely on craftsmanship has made the painful tax rise.
“It is not surprising that Starmer controls Reeves on the budget. However, it is not enough to leave him – he must also refuse his unsuccessful economic approach that leaves England poorer.”
Rachel Reeves is planned to deliver the budget on November 26th.
CBI Chief Economist Ben Jones added: “The sunlight may have removed consumers in July, but the wider economy was stuck in the shade. The growth was not equal among the sectors, the underlying demand remained more fragile. The speculation about the new commercial taxes is a long shadow.
“The government cannot lead to growth and cannot continue to raid the corporate ballot boxes. As the autumn budget approaches rapidly, Chancellor should offer a decisive, pro -growth package by undertaking serious tax reform.
Additional reporting by PA
