HomeLive CommentsUK GDP stagnates in Jul with sharp production contraction

UK GDP stagnates in Jul with sharp production contraction

The UK economy showed no growth in July, marking a disappointing performance after also stagnating in June. The flat 0.0% mom reading fell short of expectations for 0.2% increase.

Breaking down the numbers, services sector—typically a key driver of UK growth—rose just 0.1% mom in July. Meanwhile, production sector saw a sharp contraction, declining by -0.8% mom. Construction activity also fell by -0.4% mom.

In the three months to July, UK GDP managed to post 0.5% growth compared to the previous three-month period ending in April, largely supported by the services sector, which grew by 0.6%. Construction performed relatively well, with a 1.2% expansion, marking its first positive three-month growth since September 2023. However, production remained weak, contracting by -0.1% over the same period.

Full UK GDP release here.

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