UK economy returned to growth in July with ‘feeble’ 0.2% rise in GDP – business


UK economy grew 0.2% in July

Just in: The UK economy returned to growth in July.

UK GDP rose by 0.2% in July, the latest data from the Office for National Statistics shows, a smaller increase than expected.

That’s a welcome return to growth, after the economy shrank by 0.6% in June – as the extra bank holidays to mark the Platinum Jubilee hit economic output.

But it could only be a temporary respite, with the cost of living crunch hitting households and businesses this autumn and winter.

More details to follow….

The Women’s European Women’s Championship, and the Commonwealth Games in Birmingham, both gave the UK economy a boost in July.

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The ‘sports activities and amusement and recreation activities’ sub-sector grew by 8.1% in July, making it the second-largest driver of growth among consumer-facing services.

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The Women’s EURO Championship, hosted by the UK, ran through July. It was a successful event with record crowds at a series of games (before being won, dramatically, by England!).

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The first few days of the Commonwealth Games fell within July too, and will also have contributed to the sector’s growth.

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Overall, consumer-facing services grew by 0.6% in July, following a flat month in June.

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Marcus Brookes, chief investment officer at Quilter Investors says the pick-up in growth in July will ease concerns that a recession is on the immediate horizon.

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Services saw a month of positive growth, boosted by the Women’s Euros and the Commonwealth Games, while production and construction fell. However, given this data is from July, the outlook could be bleaker given it comes before a potential slowdown in activity during the period of mourning in the UK.



Read More: UK economy returned to growth in July with ‘feeble’ 0.2% rise in GDP – business

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