The UK economy failed to grow in June – the second month in a row, in contrast to an expected rise by 0.2% month-on-month.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, showed no growth in July.
It reflects a modest rise in services output which was offset by drops in both production and construction: services output grew by 0.1% month-on-month, construction output fell by 0.4% month-on-month, and production decreased by 0.8% month-on-month.
Ben Jones, CBI Lead Economist, said: “The figures suggest the UK’s recovery remains on track, though sector performance remains mixed and growth over the second half of the year will probably be a bit slower than in recent quarters.
“Ahead of what promises to be a difficult budget next month, the government is treading a narrow path to put the public finances on a sustainable footing while maintaining the confidence of business and investors in the recovery.
“The government must remain focussed on its agenda for long-term growth. This means avoiding further pressures on business costs and providing firms with the certainty and long-term commitments over tax, regulation and infrastructure that will give them confidence to invest.
“By doubling down on the recently announced planning reforms, introducing a Net Zero Investment Plan and implementing a clearer, fairer and more competitive business rates system, government has an opportunity to supercharge investment and UK growth over the next Budget period and beyond.”