UK economy stagnates for second consecutive month
Wholesale and retail trade; repair of motor vehicles and motorcycles subsector increased by 0.5% in July 2024
The UK economy experienced no growth for the second consecutive month in July, underperforming analysts’ expectations of 0.2% growth for the month.
The latest figures from the Office for National Statistics (ONS) show that services output is estimated to have increased by 0.1% in July 2024, following a decrease of 0.1% in June. The largest positive contribution to the growth in the services sector in July 2024 came from the information and communication subsector, where monthly output increased by 0.8%. This was mainly caused by computer programming, consultancy and related activities, which increased by 1.6% in July 2024 following a decrease of 1.0% in June 2024. Information service activities also grew in July 2024, by 4.2%, rebounding from a 4.2% decrease in June 2024.
The next largest contribution came from the wholesale and retail trade; repair of motor vehicles and motorcycles subsector, which grew by 0.5% in July 2024. The wholesale trade, except for the motor vehicles industry, was the main influence, with output rising by 0.7% after a decrease of 1.1% in June 2024.
However, this was offset by production output which is estimated to have decreased by 0.8% in July 2024, following growth of 0.8% in June 2024. Three of the four main sectors in production output saw decreases in July 2024, with the largest contribution to the decrease being a 1.0% reduction in manufacturing. Electricity, gas, steam and air conditioning supply and water supply, sewerage, waste management and remediation activities also decreased, by 1.7% and 0.7% respectively. These were partially offset by a growth of 3.9% in mining and quarrying.
ONS director of Economic Statistics Liz McKeown said: “The economy recorded no growth for the second month running, though longer term strength in the services sector meant there was growth over the last three months as a whole. July’s monthly services growth was led by computer programmers and health, which recovered from strike action in June. These gains were partially offset by falls for advertising companies, architects and engineers.
“Manufacturing fell, overall, with a particularly poor month for car and machinery firms, while construction also declined.”
