UK economy stagnated in July
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The UK economy unexpectedly stagnated for the second consecutive month in July, in a blow to the Labour government.
The monthly GDP figure from the Office for National Statistics on Wednesday was below economists’ expectations of a 0.2 per cent expansion and comes after the economy also registered no growth in June.
Chancellor Rachel Reeves has put growth at the centre of Labour’s agenda, promising to “take the brakes off Britain” ahead of her first Budget on October 30.
After falling into a technical recession at the end of 2023, the UK’s economic growth outpaced that of any other G7 country in the first half of this year.
The UK economy grew by 0.7 per cent in the first quarter and by 0.6 per cent in the three months ending in June.
However, most economists expect a slowdown in the second half of the year. The Bank of England forecasts 0.4 per cent growth in the three months to September, slowing to 0.2 per cent in the final quarter.
This is a developing story