Economic recovery slows in July

The UK economy’s growth slowed in July to 0.2% according to the latest figures from the Office for National Statistics (ONS).

The result is below previous forecasts of 0.4% growth for the month as worker shortages and soaring costs weighed on activity.

It found that services grew by 0.4% in July 2022, after a fall of 0.5% in June 2022, and was the main driver to the rise in GDP; information and communication grew by 1.5% and was the largest contributor to the services growth in July.

Production fell by 0.3% after a fall of 0.9% in June 2022; this was mainly because of a fall of 3.4% in electricity, gas, steam, and air conditioning supply.

Meanwhile, Construction also fell in July 2022 by 0.8%, after a fall of 1.4% in June 2022; the decrease in monthly construction output in July 2022 came solely from repair and maintenance, which fell 2.6%.

Output in consumer-facing services grew by 0.6% in July 2022, following flat growth in June 2022; consumer-facing services remained 4.3% below their pre-coronavirus (COVID-19) levels (February 2022) in July 2022.

Looking at the broader picture, GDP was flat in the three months to July compared with the previous three months.