The UK economy recorded zero growth in July as a sharp manufacturing decline wiped out gains from a strong retail performance. The stagnation marked a significant slowdown from the previous month's expansion.
The Office for National Statistics (ONS) reported gross domestic product remained flat month-on-month in July, compared to 0.4% growth recorded in June. The disappointing figures highlighted the fragile nature of Britain's economic recovery.
Manufacturing sector decline
Manufacturing activity contracted by 1.3% in July, representing the biggest monthly decline since July 2024. The sharp pullback in industrial production became the primary drag on overall economic performance during the month.
The services sector managed modest growth of 0.1%, driven by retail trade which surged 0.6% and construction which expanded 0.2%. However, these gains proved insufficient to offset the manufacturing sector's poor performance.
Broad-based weakness
Liz McKeown, ONS director of economic statistics, said: "Falls in production were driven by broad-based weakness across manufacturing industries." The widespread nature of the decline suggests structural challenges rather than isolated sectoral issues.
The mixed economic data underscores the uneven nature of Britain's economic performance, with consumer-facing sectors showing resilience while industrial production struggles to maintain momentum.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
