UK Economy Stalls for Second Consecutive Month
The UK economy remained stagnant in July 2024 for the second consecutive month, despite earlier growth predictions. The Office for National Statistics reported zero GDP change, with contributions from the services sector offset by declines in production and construction. Market expectations have risen for an interest rate cut by the Bank of England, and experts call for balanced economic policies moving forward.
The UK economy remained stagnant in July 2024, with no change in GDP for a second month in a row, according to the Office for National Statistics (ONS).
This pause follows a 0.5% growth in the three months leading up to July, disappointing economists who anticipated a 0.2% monthly growth.
Chancellor Rachel Reeves acknowledged the ongoing economic challenges, despite two quarters of positive growth.
The OECD has revised its annual growth forecast for the UK, predicting a 1.1% increase in 2024 and 1.2% in 2025.
Market expectations for an interest rate cut by the Bank of England heightened, with the current borrowing cost at 5%.
While the services sector grew by 0.1% in July, production and construction saw declines of 0.8% and 0.4%, respectively.
The ONS emphasized recovery in certain areas like computer programming and health services but noted downturns in advertising, engineering, and manufacturing.
Experts like Ruth Gregory and Lindsay James suggest cautious optimism, calling for balanced economic policies in upcoming budgets.
This pause follows a 0.5% growth in the three months leading up to July, disappointing economists who anticipated a 0.2% monthly growth.
Chancellor Rachel Reeves acknowledged the ongoing economic challenges, despite two quarters of positive growth.
The OECD has revised its annual growth forecast for the UK, predicting a 1.1% increase in 2024 and 1.2% in 2025.
Market expectations for an interest rate cut by the Bank of England heightened, with the current borrowing cost at 5%.
While the services sector grew by 0.1% in July, production and construction saw declines of 0.8% and 0.4%, respectively.
The ONS emphasized recovery in certain areas like computer programming and health services but noted downturns in advertising, engineering, and manufacturing.
Experts like Ruth Gregory and Lindsay James suggest cautious optimism, calling for balanced economic policies in upcoming budgets.
