UK Economy Posts Flat Growth in July
(MENAFN) Britain's real gross domestic product (GDP) showed no growth in July, as a significant downturn in manufacturing output weighed heavily on the economy, according to data released by the Office for National Statistics (ONS) on Friday.
This flat performance followed a 0.4 percent increase in June, highlighting a clear slowdown in economic activity.
Among the key sectors, production output fell by 0.9 percent, reversing a 0.7 percent gain from the previous month. Within production, manufacturing output dropped by 1.3 percent, with the ONS attributing the decline to widespread weakness across manufacturing industries.
On the other hand, the services and construction sectors recorded modest growth, with output rising by 0.1 percent and 0.2 percent, respectively.
Additionally, the ONS reported that real GDP grew by 0.2 percent over the three months to July compared to the same period ending in April.
Stuart Morrison, research manager at the British Chambers of Commerce, commented that the figures reflect a "subdued summer," with only limited growth in the three months leading to July, and zero growth in July itself.
“The business landscape remains challenging, particularly for small and medium-sized enterprises, with cost pressures impacting investment, recruitment and trade,” Morrison noted.
He also warned that persistent inflation is keeping borrowing costs high, which suggests that any potential interest rate cuts could occur more slowly than anticipated.
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