Economic growth came to a standstill in July, according to official estimates, in a sign that the UK’s surprisingly strong start to the year might be weakening.
New figures show that the UK economy stagnated month-on-month in July, falling short of the 0.2 per cent growth expected by economists.
The services sector was the only sector to record growth in July, expanding 0.1 per cent. The production sector, meanwhile, contracted 0.8 per cent while the construction sector fell 0. 4 per cent.
The figures mean the UK has not expanded for the past two months, putting the economy on track for a weaker second half of the year.
The UK was the fastest growing economy in the G7 in the first half of the year, surprising many pundits who had expected another yet of relative stagnation.
GDP grew 0.6 per cent in the second quarter, having notched a 0.7 per cent expansion in the first three months of the year.
Most economists think that the pace of growth will slow over the remainder of the year, but the UK is still on track to grow around 1.1 per cent in 2024, well ahead of the 0.3 per cent pencilled in by analysts last December.
Economic growth has been at the heart of Labour’s agenda with Starmer claiming wealth creation is his “number one priority“.
Since entering office, ministers have announced ambitious plans to overhaul the planning regime as well as proposals to help the long-term sick back into work.
More to follow