Proactive Investors - The British economy remained flat in July 2024, recording no growth for the second consecutive month, according to the Office for National Statistics (ONS).
The latest figures fell short of economists' expectations for a 0.2% increase in GDP.
While services output increased by 0.1% during the month, it was insufficient to offset a 0.8% decrease in production output and a 0.4% drop in construction output.
The manufacturing sector also recorded a decline, with production falling by 1% after a 1.1% rise in June.
Commenting on the data, Liz McKeown, director of economic statistics at the ONS, said: “The economy recorded no growth for the second month running, though longer term strength in the services sector meant there was growth over the last three months as a whole.
“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.
“Manufacturing fell, overall, with a particularly poor month for car and machinery firms, while construction also declined.”
The data is likely to galvanise the dovish faction of the Bank of England’s Monetary Policy Committee, which has been gunning for more progressive cuts interest rates to stave off a recession.
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