Zero growth in July when the economy “continued to slow down”, according to official figures | Money news Aitrend

The British economy “continued to slow down” and recorded zero growth in July, according to official figures showing a large trail of manufacturers.

Data from the National Statistics Office (ONS) followed growth of 0.4% the previous month and negative growth of 0.1% in May.

The 0.3% production was obtained during the April-June quarter as a whole, slowing down to 0.7% recorded in the first three months of 2025.

Money Dernited: Reaction while the economy slows down

The latest figures report the coming months when the labor market slows down and the effects of high inflation and the American trade war has attenuated demand.

Commenting on the July activity, the director of economic statistics of the ONS, Liz McKeown, said that the drop in production compensates for the meager growth of services and construction.

“Growth in the economy Overall, has continued to slow down in the past three months, “she said.

“While the growth of the services has resisted, production has folded back.

“Within services, health, computer programming and offices support services all worked well, while production falls were motivated by a weakness based on manufacturing industries.”

The Labor government made the growth of the economy its priority when it took office last summer, but the chancellor admitted this week that he had become “stuck”.

The United States trade war has proven to be an activity exercise worldwide this year but Rachel Reeves has also been accused of having applied the brakes itself by looting the private sector to species since taking office, investments and employment in the process.

Employers reacted to a budget tax raid of 40 billion pounds sterling by reducing jobs and adopting the cost increase to customers.

Inflation is currently working to double the Bank of EnglandTargeting 2%, harming the prospects for future interest rate reductions.

Last week’s banking data suggested that employers delete jobs The fastest rhythm since 2021.

The attention quickly turns to the next budget, of November 26, and the nerves on the measures to come and hinder the feeling.

Ms. Reeves is under pressure to increase more taxes to fill a black hole in public finances estimated between 30 and 40 billion pounds sterling.

The Chancellor has again excluded from the increase in income tax, national employee insurance contributions and VAT, which, she has always said, would cause direct damage to “workers”.

Possible targets include the rich. Banks also fear a raid on their profits.

But the director general of the CBI business lobby group told Guardian newspaper this week that Ms. Reeves should now break her promise not to target workers.

Rain Newton-Smith argued that new corporate tax increases would be equivalent to another suffocation on growth and employment, indirectly harming workers.

The CBI wants to see reforms of commercial rates and reductions in VAT thresholds, among others, because the private sector marries its greater tax burden.

“The world is different from the moment when work has written its manifesto and when the facts change, the solutions should,” added Ms. Newton-Smith.

The chancellor responded with plans to facilitate certain business obstacles in the context of efforts to improve growth.

The Treasury is considering a recast of the rules of rescue for small businesses to put an end to a so-called “cliff” penalty with which companies are faced with two local seconds.

The British Retail Consortium warned separately on Friday that 400 of the country’s largest stores could close if such premises were in a highest band of commercial prices.

He argued that they were already subject to a significant pressure from the outbreak of employment and tax costs, which had taken into account the closure of 1,000 spaces of this type in the past five years.

Commenting on ONS data, a treasury spokesperson said: “We know that there is no more to stimulate growth, because, although our economy is not broken, it seems blocked.

“It is the result of years of underinvestment, that we are determined to reverse our change plan.

“We are progressing: this year’s growth has been the fastest in the G7; Since the elections, interest rates have been reduced five times and real wages have increased more quickly than in the last government.

“There is no longer to do to build an economy that works and rewards, workers. This is why we reduce unnecessary administrative formalities, transforming the planning system to have Great Britain built and investing billions of books into affordable houses, sizewell C and local transport across the country. ”

The Chancellor of the Shadow Mel Stride replied: “While the government extends from one scandal to another, borrowing costs have recently reached a 27 -year summit – an overwhelming vote without confidence in work which makes increases in painful tax almost certain.

“It is not surprising that Starmer has stripped back control over the budget. But the sidelining is not enough – it must also reject its failed economic approach which has left poorer Britain.”