Real UK GDP has shown no month-on-month growth in July, marking the second consecutive month of stagnation for the UK economy and the third time the UK economy has failed to grow in four months, according to data from the Office for National Statistics (ONS).
Forecasts were that GDP would grow 0.2% in July, but this failed to materialise. It was, however, 1.2% higher than July 2023. Overall, GDP has grown 0.5% over the past three months, compared with the three months to April, propped up by May’s reading.
The production and construction sector both faced a troubling month, with ONS data showing a decline in output of 0.8% and 0.4% respectively.
Lindsey James, investment strategist at Quilter Investors, said: “The UK economy was expected to continue to show modest momentum, but signs suggest that the growth from the first half of the year is now stuttering.”
Derrick Dunne, chief executive officer of YOU Asset Management, added: “While just a snapshot, these monthly figures show the UK’s economy is still moving at a pedestrian pace overall.”
“The year-on-year growth reported is certainly positive for businesses, households and government alike, but lacklustre growth is not going to solve everyone’s problems.”
However, there was still positivity, with the services sector, which grew by a modest 0.1% in July, and recent positive noise around the wider economy which has prompted better forecasts for the rest of the year.
James concluded: “There are signs that solid, if unspectacular, economic growth is returning to the UK even after today’s disappointing figure.”