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Economy flatlined in July after sharp contraction in manufacturing

By Emily Price
Engineers working in a factory. Photo David Davies/PA Wire

The UK economy flatlined in July as the biggest contraction for a year in the manufacturing sector offset a bumper month on the high street.

The Office for National Statistics (ONS) said there was zero growth in gross domestic product (GDP) month on month in July, against 0.4% growth in June.

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It came after the manufacturing sector saw activity pull back by 1.3% – the biggest contraction since July 2024.

This held back growth in the wider economy, with the services sector up 0.1% thanks to expansion of 0.6% for retail and construction growing 0.2%.

Liz McKeown, ONS director of economic statistics, said: “Falls in production were driven by broad-based weakness across manufacturing industries.”

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5 comments

Evan Aled Bayton

This is the result of Brexit and the governments economic policies which seem to focus on ideology rather than reality. Both main parties are to blame. I am reminded of the exultation in Gordon Brown’s voice when he said “An end to boom and bust.” He was right. His policies created perpetual bust.

Reply
jimmy

Not surprising when we have some of the highest energy costs globally. Self imposed to a large extent.

Reply
Bruce

Over-reliance on gas, and dodgy windmill contracts linked to gas prices that could be nationalised and immediately privatised on sensible contracts.

Reply
Bruce

There's nothing else for it. We need to abolish retirement to make a success of Brexit. No state pensions for anyone who still has a few more years of shelf-stacking in them. We can't afford to waste this labour anymore.

Reply
Brychan

Manufacturing is the real economy. In the meantime we can continue to sell each other posh coffees and insurance cover as fake economic activity until the nations credit card runs out.

Reply

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Replying to jimmy Cancel

Not surprising when we have some of the highest energy costs globally. Self imposed to a large extent.

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