"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."
"Economists expect GDP to expand by just 0.2 to 0.3 per cent in the third quarter-broadly in line with forecasts from the Bank of England and the Office for Budget Responsibility. Chancellor Rachel Reeves faces mounting pressure to boost growth ahead of November's budget, though economists stress the latest data does not materially alter the government's fiscal headroom. Treasury officials acknowledged the economy " feels stuck " after years of underinvestment, but pointed to progress on wages, interest rates and G7-leading growth earlier this year."
UK GDP registered 0.0% monthly growth in July, leaving growth flat as a sharp manufacturing contraction weighed on activity. Output on a rolling three-month basis rose 0.2%, a measure the ONS will prioritise given monthly volatility. Production fell 0.9%, with manufacturing down 1.3% and industrial output at its lowest since January. Services edged up 0.1% and construction gained 0.2%, while health output rose 0.6% as NHS strikes had less impact. Economists warn momentum is fading amid higher interest rates, persistent inflation and weaker global demand, with Q3 growth expected at 0.2–0.3% and markets reacting with a weaker sterling and higher gilt yields.
Read at Business Matters
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