The UK economy flatlined in July, with GDP growth stuck at 0 per cent as a sharp contraction in manufacturing weighed on activity at the start of the third quarter.
Official figures from the Office for National Statistics (ONS) showed output falling short of the 0.1 per cent growth economists had forecast, underlining the fragile nature of Britain’s recovery.
The ONS said the economy grew by 0.2 per cent on a rolling three-month basis, a measure it will now prioritise to provide a clearer picture of performance given the volatility of monthly data. July’s weakness was driven by a 0.9 per cent fall in production, including a 1.3 per cent decline in manufacturing, pushing industrial output to its lowest level since January.
Services, which make up nearly three-quarters of UK GDP, edged higher by 0.1 per cent, while construction posted a 0.2 per cent gain, helping to soften the blow. The health sector also contributed positively, with output rising 0.6 per cent as NHS strikes had less impact than in earlier months.
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