UK economy flatlined in July after sharp contraction in manufacturing
Why the UK economy failed to grow in July
- The UK economy recorded zero growth in July, flatlining after a 0.4 per cent expansion in June, according to the Office for National Statistics.
- This stagnation was primarily due to a 1.3 per cent contraction in the manufacturing sector, marking its largest decline in a year.
- Growth in the services sector, which rose by 0.1 per cent, and a 0.2 per cent increase in construction activity helped to offset the manufacturing downturn.
- Overall economic growth slowed for the third consecutive period, with a 0.2 per cent rise across the three months to July.
- Experts suggest the economy is “grinding to a halt”, attributing the slowdown partly to government policies such as increased employer national insurance contributions, with further uncertainty anticipated.