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UK economic growth slows to lowest since January lockdowns

The surge in COVID-19 cases in July was largely to blame for the stagnation of GDP, economists said

UK economic growth slowed to its lowest since the lockdown-hit start of the year, according to new figures from the Office for National Statistics.

Gross domestic product grew 0.1% in July, the weakest since January, with GDP 2.1% below its pre-pandemic peak.

The services sector was flat, industrial production grew 1.2% but still 2.1% below peak, while construction fell 1.6%.

The surge in Coronavirus (COVID-19) cases in July was largely to blame for the stagnation of GDP, said economist Samuel Tombs at Pantheon Macroeconomics.

"Encouragingly, most real-time indicators we track have picked up since. But the MPC's forecast for 3% q/q growth in Q3 and Q4 now is out of reach - markets' faith in a Q2 2022 rate hike is misplaced," he said in a tweet.

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