UK economic growth flatlined once again in July, with data from the Office for National Statistics (ONS) showing gross domestic product (GDP) did not see any month-on-month growth, having also flatlined in June.
This came in below expectations of 0.3% month-on-month growth, according to a research note from Deutsche Bank released on Monday.
The services sector grew 0.1% in July but both production and construction fell by 0.8% and 0.4% respectively.
Figures released last month showed the economy expanded by 0.6% in the second quarter, after having grown 0.7% in the first three months of the year.
GDP is the measure of everything produced in the UK.
Liz McKeown, the ONS director of economic statistics, said: “July’s monthly services growth was led by computer programmers and health, which recovered from strike action in June.”
“These gains were partially offset by falls for advertising companies, architects and engineers.”
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At the end of last year, the UK economy fell into a shallow and short-lived recession. A recession is defined as economic activity shrinking for two three-month periods — or quarters — in a row.
ONS data released on Tuesday showed UK wage growth continued to slow in the three months to July, with annual pay excluding bonuses growing 5.1% in that period.
Meanwhile, the rate of unemployment fell to 4.1%, the ONS data showed, down from 4.2% in the three months to June.
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Lindsay James, investment strategist at Quilter Investors, said: “The UK economy was expected to continue to show modest momentum, but signs suggest that the growth from the first half of the year is now stuttering.”
“Given the mood music emanating from the government and the economic inheritance it has received from the Conservatives, the government needs to be careful not to overcorrect with its narrative around tax rises and the potential this has to put off investment,” she said.
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