Pound dips after UK economy grinds to a halt in July with no growth in GDP – business live

The Guardian
The Guardian
3M ago
64 views
The UK economy showed no growth in July, with GDP remaining flat. Manufacturing output fell by 1.1%, contributing to a broader decline in production. Treasury officials attribute the stagnation to years of underinvestment, while concerns about potential new business taxes are impacting growth. The pound weakened following the GDP report, and economists warn of ongoing uncertainty as the government prepares for the upcoming budget.
Pound dips after UK economy grinds to a halt in July with no growth in GDP – business live
A What happened
The UK economy showed no growth in July, with GDP remaining flat. Manufacturing output fell by 1.1%, contributing to a broader decline in production. Treasury officials attribute the stagnation to years of underinvestment, while concerns about potential new business taxes are impacting growth. The pound weakened following the GDP report, and economists warn of ongoing uncertainty as the government prepares for the upcoming budget.
★

Key insights

  • 1

    Manufacturing Decline: Manufacturing output fell by 1.1% in the last quarter.

  • 2

    Pound Weakens: The pound dropped 0.2% against the US dollar following the GDP report.

  • 3

    Economic Stagnation: UK GDP remained unchanged in July, indicating economic stagnation.

  • 4

    Government Response: Treasury blames years of underinvestment for the stagnant economy.

Takeaways

The UK economy's stagnation raises concerns about future growth and government fiscal policy.

Topics

Business & Markets Markets Economy