Data published by the Office for National Statistics (ONS) showed that the GDP remained unchanged in July, as in June. Economists had expected a 0.2% increase. Meanwhile, over the three-month period (through July), the economy expanded by 0.5% compared with the three months to April, with widespread growth in the services sector in this period.
On an annual basis, GDP grew by 1.2% in July after an increase of 0.7% in June. Consensus estimates suggested an increase of 1.4%. The latest increase was the strongest since May. For a three-month period (through July) GDP grew by 1.1% compared with the three months to July 2023.
The ONS said services output rose by 0.1% in July, following a decrease of 0.1% in June. The largest positive contribution to the growth in the services sector came from the information and communication subsector, where monthly output increased by 0.8%. The largest negative contribution to services growth came from professional, scientific and technical activities, down by 1.3%, following five consecutive monthly increases. Output in consumer-facing services increased by 0.3% in July, following a decrease of 0.7% in June. The industries that contributed most to this monthly growth were retail trade, except of motor vehicles and motorcycles (up 0.5%), sports activities and amusement and recreation activities (up 3.0%), and accommodation (up 2.2%).
Meanwhile, industrial production fell 0.8% after rising 0.8% in June. Economists had expected an increase of 0.3%. Manufacturing production declined by 1.0% after an increase of 1.1% in June. Consensus estimates suggested an increase of 0.2%.