UK GDP flat in July, adds pressure on Reeves ahead of Autumn Budget

The UK economy recorded no growth in July, the Office for National Statistics said on Tuesday, leaving monthly gross domestic product flat and piling pressure on Chancellor Rachel Reeves as she prepares for the Autumn Budget in November. The stagnation follows a 0.4 per cent expansion in June and leaves the three-month average growth at 0.2 per cent, while year-on-year GDP of 1.4 per cent was slightly below City forecasts.

The ONS said the flat monthly outcome reflected a mix of sector moves. Output in the industrial and manufacturing sectors fell, with industrial output down 0.9 per cent and manufacturing off 1.3 per cent, while construction rose a stronger-than-expected 2.4 per cent. ONS director of economic statistics Liz McKeown said three-month figures are less volatile than single months and that services growth held up even as production weakened across manufacturing industries. In July, increases in services and construction were offset by falls in production, she added.

Analysts warned the July result is consistent with a slowdown after unusually strong growth in the first half of the year, when the UK was the fastest-growing G7 economy. Andrew Goodwin, chief UK...