UK GDP unexpectedly stalled, with figures showing no growth for the second month in a row, falling below forecasts of a 0.2% monthly rise.
It is estimated that real GDP has grown by 0.5% in the three months to July compared with the three months to April, with growth seen right across the services sector.
Rob Morgan, Chief Investment Analyst at Charles Stanley said: “Having brushed aside the 2023 slowdown, the UK economy grew by 0.7% in the first quarter of 2024 and by 0.6% in the second. However, the third quarter has got off to an inauspicious start with no increase for July compared with June, which was also a flat month.
“The year-on-year figure of 1.2% growth reflects a mild but bumpy upturn from the low point in the fourth quarter of 2023. Very slight overall growth over the past three months was salvaged by the service component with manufacturing and construction both in reverse.”
Services output grew by 0.1% month-on-month, although construction output fell by 0.4%, with production also falling by 0.8%.
Derrick Dunne, CEO of YOU Asset Management, commented: “While just a snapshot, these monthly figures show the UK’s economy is still moving at a pedestrian pace overall. The year-on-year growth reported is certainly positive for businesses, households and government alike, but lacklustre growth is not going to solve everyone’s problems.
“For markets, modestly positive growth is a positive sign, but easing rates will be a much more influential factor in whether the markets can now march on to higher levels. For investors it is a question of sticking to their theses and being prepared for all eventualities. For anyone considering their position and the long-term health of their portfolio, seeking advice can be an effective way to ensure the best possible outcomes for their savings.”
