UK economy stagnates in July - ONS

(Sharecast News) - The UK economy stagnated in July, official data released on Friday showed, weighed down by weakness in the production sector. According to the Office for National Statistics, there was no growth in the month of July, in line with consensus. GDP grew by a higher-than-expected 0.4% in June, and fell 0.1% in May.

However, in the three months to July - the ONS's preferred measure - GDP grew by 0.2%, down on June's 0.3% but in line with forecasts.

The services sector grew by 0.4% over the three months, while the construction sector expanded by 0.6%. In contrast, production fell 1.3%.

Liz McKeown, director of economic statistics at the ONS, said: "Within services, health, computer programming and office support services all performed well, while the falls in production were driven by broad-based weakness across manufacturing industries."

Chancellor Rachel Reeves, who presents her annual budget at the end of November, is battling stagnant economic growth and surging government spending alongside sticky inflation.

The UK economy grew by 0.7% in the first quarter and 0.3% in the second.