UK Economy Stalls ‍for Second Consecutive Month in July

The British Office for National Statistics announced​ on Wednesday that the‍ UK’s GDP remained flat in July, following‍ a similar trend in June. Economists had forecast a growth of 0.2%, ‌but declines in ‌production and construction offset the strong services⁣ sector.

The UK economy has stalled for the second month⁣ in a ⁣row, indicating that the rapid recovery from recession is ​losing⁣ momentum. This slowdown⁣ comes as a​ blow to Prime ‍Minister Keir ⁢Starmer.

Despite a strong start to the⁤ year, with ⁢the UK economy ⁤growing ‍by 1.3% ⁢in the first half, the⁤ economic performance ⁢is expected to be significantly ⁢weaker in the ⁤second half. The Bank‍ of England and private sector economists predict an average growth​ of⁤ 0.3% in the third and fourth quarters. Notably, the UK economy has not grown in ‍three of the past four months.

Labor’s⁤ recent general election victory was largely based on promises to repair public finances through economic growth and deliver improved living standards. Prime Minister Keir Starmer has pledged⁢ to achieve the fastest‌ sustained ‌growth in the G7 by ⁢reforming the planning system and boosting investment. However, this‍ goal seems ambitious, given the UK’s decade-long ​struggle with anemic productivity growth.

Economists Ana Andrade ‌and Dan⁤ Hanson commented, “The stagnant GDP in July suggests that the UK economy may slow down in‌ the second half of the year⁤ after strong growth in the first half. Despite ⁢the soft data, we still believe that the main risk ​is ​that this ​momentum lasts longer than we expect.”