Economy flatlined in July after sharp contraction in manufacturing

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.

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.”