UK economy records no growth in July, pausing recovery from June rise

The UK economy showed no growth in July, according to the latest official monthly figures published by the Office for National Statistics (ONS).

The ONS reported that GDP was flat in July after a 0.4% expansion in June. The result leaves the economy without monthly momentum in the middle of the year and increases scrutiny of the government's ability to deliver its stated priority of boosting growth.

Monthly GDP figures published by the ONS provide an early gauge of the economy's short-term direction by measuring output across services, production and construction. A flat reading means aggregate output in July was broadly unchanged from June. The figure follows the modest rebound recorded for June and will be factored into assessments of the wider economic trajectory through the remainder of the year.

The result comes as the government prepares its next Budget, due on 26 November, when Chancellor Rachel Reeves will set out tax and spending plans. Officials and markets have been watching monthly data for signs that fiscal measures or shifting economic conditions are feeding into stronger growth. There has been increasing public and political discussion that the Chancellor may need to adjust tax settings to meet fiscal and spending objectives.

Officials at the ONS said the monthly estimate is part of the regular statistical series intended to track short-term changes in output. Monthly readings can be volatile and are typically assessed alongside quarterly data and other indicators, such as employment, inflation and business investment, to build a fuller picture of economic health.

Policymakers, analysts and lawmakers will use the latest numbers in the run-up to the Budget as they weigh options to stimulate growth and manage public finances. The government has repeatedly identified economic growth as a central priority; the July stagnation underscores the challenge of achieving sustained expansion in the near term.

Further updates from the ONS and additional economic releases ahead of the autumn Budget will offer more detail on sectoral performance and the outlook for the UK's recovery trajectory.