"UK Economy Grinds to Halt in July"

UK Economy Stalls: Zero Growth in July Amid Manufacturing Slump The UK economy recorded zero growth in July, marking the second consecutive month of stagnation, according to data released by the Office for National Statistics (ONS). The lackluster performance has raised concerns ahead of Chancellor Rachel Reeves' Budget announcement on November 26. The ONS reported that manufacturing output declined sharply in July, resulting in a contraction of 0.4% compared to June. However, this was offset by expansion in the service sector, which helped maintain overall economic growth at zero for the month. The three-month rolling average showed a modest increase of 0.2%, indicating a slowdown in economic activity over the past quarter. The UK economy's stagnation has sparked concerns among economists and policymakers, who are urging the government to take decisive action to boost growth. "The data is disappointing, but not entirely unexpected," said Dr. Emma Taylor, an economist at the Centre for Economic Performance. "We need to see a comprehensive plan from the Chancellor to address the underlying issues driving this slowdown." According to the ONS, the UK economy has been experiencing a decline in manufacturing output since June, with July's contraction being the largest in over a year. This trend is particularly concerning given the sector's importance to the country's economic growth. The government is under mounting pressure to deliver on its key priority of boosting economic growth ahead of the Budget announcement. Chancellor Reeves will outline the government's tax and spending plans, which are expected to include potential tax hikes to raise revenue and fund public services. In a statement, the ONS noted that monthly figures can be volatile, and it would now focus on growth over a rolling three-month period. "We recognize that economic data can be subject to fluctuations, but we will continue to monitor the situation closely," said an ONS spokesperson. The UK's sluggish economy has significant implications for businesses and households, who are already facing rising costs and uncertainty. As the government prepares to unveil its Budget plans, economists and policymakers are urging caution and a comprehensive approach to address the underlying issues driving this slowdown. In conclusion, the UK economy's zero growth in July is a stark reminder of the challenges facing the country's economic recovery. With the Budget announcement just weeks away, the government must take decisive action to boost growth and address the concerns of businesses and households alike. Sources: Office for National Statistics (ONS) BBC Business Centre for Economic Performance This story was compiled from reports by BBC Business and BBC Business.