UK economy shows no growth for second month in a row, as Chancellor admits 'change won't happen overnight'
11 September 2024, 07:42
The British economy showed no growth in July for the second straight month, with Labour admitting they are "under no illusion" about the scale of the challenge ahead.
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Gross domestic product (GDP) had been expected to increase very slightly, by 0.1%, according to a consensus of economists released ahead of the Office for National Statistics data.
It comes after the economy also flatlined in June, but grew 0.6% between April and June, in a continuing recovery from recession at the end of last year.
Labour's Chancellor, Rachel Reeves, said that the economic malaise afflicting the UK would not be fixed straightaway, as she sought to pin the blame on the Conservatives, who ran the country between 2010 and 2024.
She also pointed to a planned multi-billion pound investment by Amazon Web Services in the UK, which could support as many as 14,000 jobs.
Watch Again: Chancellor Rachel Reeves speaks to Nick Ferrari | 30/07/24
ONS director of economic statistics Liz McKeown said: "The economy recorded no growth for the second month running, though longer term strength in the services sector meant there was growth over the last three months as a whole.
"July's monthly services growth was led by computer programmers and health, which recovered from strike action in June. These gains were partially offset by falls for advertising companies, architects and engineers.
"Manufacturing fell, overall, with a particularly poor month for car and machinery firms, while construction also declined."
Ms Reeves said: "I am under no illusion about the scale of the challenge we face and I will be honest with the British people that change will not happen overnight.
"Two quarters of positive economic growth does not make up for fourteen years of stagnation.
“That is why we are taking the long-term decisions now to fix the foundations of our economy, including today’s announcement of £8 billion of new investment from Amazon Web Services, that will help rebuild Britain and make every part of the country better off.”
