The UK financial system grew by simply 0.2% in July, based on the Office for National Statistics.
The determine was beneath the 0.4% progress anticipated by economists, and follows a fall of 0.6% in June.
While this implies it’s 1.1% above pre-coronavirus ranges, GDP was nonetheless flat within the three months to July in contrast with the earlier three months.
The foremost think about July’s determine was the 0.4% progress seen within the companies sector, which adopted a 0.5% drop between May and June.
Yael Selfin, chief economist at KPMG UK stated: “The feeble 0.2% bounce again in July was pushed by weak GDP in June due partially to the lack of working days from the Jubilee lengthy weekend.
“More concerning, July’s GDP remains below the level seen in May, pointing to an overall contraction over the first two months of summer.
“This ties right into a downbeat outlook for the UK financial system which might see one other shallow recession from the top of this 12 months, pushed by the continuing squeeze on households’ earnings and a rising price burden for companies.
“While nearly £170bn worth of fiscal measures announced last week may be sufficient to avoid a deeper economic slump, these will be partly offset by tighter Bank of England monetary policy focussed on combating the high levels of inflation.”
It comes a month after the Bank of England forecast that the UK would slip right into a recession on the finish of this 12 months, which might final till early 2024, due primarily to the more and more excessive price of dwelling.
Last week, Prime Minister Liz Truss introduced an enormous handout to assist folks deal with rapidly-growing power costs, which might ease inflation barely, however will come at a value estimated to be not less than £100bn.
Source: information.sky.com”