UK GDP fell by 0.5% in July compared to June

Hey The ONS added that in addition to the services sector, there were declines across all sectors in July on a monthly basis.

Despite this monthly decline, UK GDP grew by 0.2% in the three months between May and July, with increases in key sectors, offering more promising signs of recovery.

Global services output fell 0.5% in July 2023, compared to 0.2% growth in June, while consumer-oriented services did not expand in July after growing 0.5% in the previous month.

Industrial production fell 0.7%, after a 1.8% increase in June, and the construction sector fell 0.5% in July, after a 1.6% increase the previous month, according to the Office for National Statistics.

ONS Director of Economic Statistics Darren Morgan stressed that although GDP contracted in July, “the overall picture looks more positive: the economy has grown in the services, production and construction sectors in the past three months.”

Morgan added that strikes in sectors such as healthcare and education negatively impacted the economy that month, while construction and retail trade slowed “due to inclement weather.”

The manufacturing sector also declined, having previously recovered “due to the impact of the additional holiday in May”, marking the coronation of Charles III.

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