Despite this monthly decline, UK GDP grew by 0.2% in the three months between May and July, with increases in key sectors, offering more promising signs of recovery.
UK GDP fell 0.5% in July from the previous month, mainly due to the services sector, compared with 0.5% growth in June, the Office for National Statistics reported on Wednesday.
The Office for National Statistics said that in addition to the services sector, there were declines across all sectors in July on a monthly basis.
Despite this monthly decline, UK GDP grew by 0.2% in the three months between May and July, with increases in key sectors, offering more promising signs of recovery. Global services output fell 0.5% in July 2023, compared to 0.2% growth in June, while consumer-oriented services did not expand in July after growing 0.5% in the previous month.
Industrial production fell 0.7%, after a 1.8% increase in June, and the construction sector fell 0.5% in July, after a 1.6% increase the previous month, according to the Office for National Statistics.
ONS Director of Economic Statistics Darren Morgan stressed that although GDP contracted in July, “the overall picture looks more positive: the economy has grown in the services, production and construction sectors in the past three months.” Morgan added that strikes in sectors such as health and education negatively affected the economy that month, while construction and retail trade slowed “due to bad weather conditions.”
The manufacturing sector also declined, having previously recovered “due to the impact of the additional holiday in May”, marking the coronation of Charles III.
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