Fri, 12 Sep 2025

Fri, 12 Sep 2025 UK economy saw zero growth in July

The economy failed to grow following the biggest contraction in manufacturing output for a year.

* UK economy saw zero growth in July, following a 0.4% expansion in June.
* In the three months to July, the economy expanded by 0.2%.
* Service sector grew by 0.4%, but this was offset by a fall in output from the production sector.
* Manufacturing contracted by 1.3% in July, the sharpest monthly decline since July last year.
* Economy is still on track to grow in the third quarter, despite "continued slowing" over the past three months.
* Chancellor Rachel Reeves may raise taxes in the Budget to meet her self-imposed fiscal rules.
* Estimates for the size of the "black hole" in the public finances vary widely between £18bn and £50bn.
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