Britain’s economy flatlined in July, official data showed Friday, underscoring concerns of a slowdown as Chancellor Rachel Reeves readies her first Autumn Budget.
The Office for National Statistics said GDP was unchanged on the month, following 0.4% growth in June. Industrial output fell 0.9%, while services and construction posted modest gains.
The figures mark a sharp loss of momentum after the UK recorded 0.3% growth in the second quarter, the fastest among G7 economies. Economists warn that the second half of 2025 will be weaker as earlier boosts from stockpiling and public spending fade.
Reeves has pledged to reduce debt and fund spending through taxes, but analysts say stagnation could increase the likelihood of tax hikes in the Nov. 26 budget.
The Bank of England, meanwhile, faces the challenge of sluggish growth alongside inflation, which rose to 3.8% in July. The central bank is expected to hold rates at its Sept. 18 meeting, with markets now focused on its Nov. 6 decision.
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