UK GDP was flat month-on-month in July, following a 0.4% rise in June. In line with expectations.
GDP rose 0.2% in the three months to July and services output grew 0.1% month-on-month, whilst construction output grew 0.2% month-on-month.
Production output fell 0.9% month-on-month.
Jonathan Moyes, Head of Investment Research at Wealth Club said, “After seeing a strong beat for GDP in June, surprisingly strong retail sales figures and upbeat survey data over the summer, optimists would be forgiven for thinking the UK economy was defying the doubters.
“That wasn’t to be this month, the UK economy is firmly back in the slow lane.
“Stagflation remains the key challenge for policy makers. With anaemic growth and inflation running at 3.8%, the Bank of England may feel its hands are tied. Overdo it on rate cuts to help revive an ailing economy and you could risk runaway inflation.
“The key lever to revive our fortunes and get the economy moving again must then therefore be a fiscal one. The continued weakness in the UK economy will put pressure on the government to revise its approach to growth. The chorus of voices shouting you cannot tax your way to growth will grow ever louder as the evidence piles up. The chancellor appears to be running out of road.”
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