UK GDP hit the pause button in July 2025, with no growth reported by the Office for National Statistics. That followed a 0.4% rise in June and a slight dip in May.
Analysts commented that the latest GDP print reinforces the sense that the UK’s growth story is fragile, putting additional pressure on Chancellor Rachel Reeves as she prepares her Autumn budget.
Looking over the three months to July, the economy managed just 0.2% growth, a slowdown from earlier in the year.
Services kept things moving, up 0.4% over the period, with health, professional and IT services doing most of the heavy lifting. Transport and storage also gave a boost in July.
Production was the weak link, sliding 1.3% across the three months and 0.9% in July, pulled down by falls in manufacturing, mining and energy supply.
Construction chipped in with a modest gain, rising 0.6% over the three months and 0.2% in July, thanks to activity in housing and infrastructure.
Even with the flat month, the economy was still 1.4% bigger than it was a year ago.
"After a strong first half, July’s stall shows how quickly momentum can fade when businesses and households are squeezed by rising costs and looming tax hikes," said eToro global market analyst Lale Akoner.
"The risk is that fiscal tightening in November collides with a cooling labour market, amplifying pressure on demand. The reality is that without clearer productivity gains or investment incentives, the economy risks slipping back into a pattern of stagnation just as fiscal space narrows.”