UK GDP report to show how economy performed in July – business live

From 47m ago 02. 02 UK economy grew 0. 2% in July Just in: The UK economy returned to growth in July.

UK GDP rose by 0. 2% in July, the latest data from the Office for National Statistics shows, a smaller increase than expected. That’s a welcome return to growth, after the economy shrank by 0.

6% in June – as the extra bank holidays to mark the Platinum Jubilee hit economic output. But it could only be a temporary respite, with the cost of living crunch hitting households and businesses this autumn and winter. More details to follow….

Updated at 02. 24 EDT Key events 27m ago KPMG: economy faces downbeat outlook after ‘feeble’ recovery in July 30m ago UK econony stagnated over the last quarter 38m ago Power production fell, hitting industrial output 47m ago UK economy grew 0. 2% in July 1h ago Economy could feel chill from national mourning 1h ago Introduction: UK’s July GDP report in focus Filters BETA Key events ( 6 ) UK ( 9 ) Office for National Statistics ( 4 ) 11m ago 02.

39 Shortages of workers continued to hold back growth in July. In today’s GDP report, the ONS says: . css-knbk2a{height:1em;width:1.

5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} Businesses… reported staff shortages as being an issue. Hotels and hospitality services were particularly badly affected, but comments were also received from manufacturers of health and beauty products, sheet metal fabricators, haulage companies, solicitors, and cleaning companies. 14m ago 02.

35 Economic growth has been choppy this year, as this chart of monthly GDP shows: UK GDP each mo Photograph: ONS After 0. 6% growth in January, the UK economy stagnated in February, then grew 0. 1% in March.

April saw a 0. 2% fall, before a 0. 4% recovery in May – wiped out by June’s 0.

6% drop, which meant the economy shrank slightly in Q2. 27m ago 02. 22 KPMG: economy faces downbeat outlook after ‘feeble’ recovery in July The “feeble 0.

2% bounce back in July” was driven by weak GDP in June due in part to the loss of working days from the Jubilee long weekend, says Yael Selfin, Chief Economist at KPMG UK: . css-knbk2a{height:1em;width:1. 5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} More concerning, July’s GDP remains below the level seen in May, pointing to an overall contraction over the first two months of summer.

“This ties into a downbeat outlook for the UK economy which could see another shallow recession from the end of this year, driven by the ongoing squeeze on households’ income and a rising cost burden for businesses. “While nearly £170bn worth of fiscal measures announced last week may be sufficient to avoid a deeper economic slump, these will be partly offset by tighter Bank of England monetary policy focussed on combating the high levels of inflation. ” 28m ago 02.

21 The UK economy is now 1. 1% above its levels in February 2020, before the pandemic hit the economy. Small uptick for GDP in July: 0.

2%. Mainly driven by a boost in services. “Monthly GDP is now estimated to be 1.

1% above its pre-coronavirus (COVID-19) levels (February 2020). ” pic. twitter.

com/bNOVp34JoC — Kate Andrews (@KateAndrs) September 12, 2022 30m ago 02. 20 UK econony stagnated over the last quarter The broader picture is that Britain’s economy failed to grow over the last quarter, weighed down by economic headwinds. GDP was flat in the three months to July compared with the previous three months, the ONS reports.

UK GDP to July 2022 Photograph: ONS Updated at 02. 25 EDT 37m ago 02. 12 The UK’s construction sector shrank again in July too – wth a 0.

8% drop in output, after a 1. 4% in June 2022. This was due to a drop in repair and maintenance work.

Updated at 02. 12 EDT 38m ago 02. 11 Power production fell, hitting industrial output Manufacturing only expanded by 0.

1% in July. And the wider production sector actually contracted again – by 0. 3% after a fall of 0.

9% in June 2022, due to a fall in output in the electricity, gas, steam, and air conditioning supply. The ONS says people may have cut back on electricity use following the surge in prices this year. .

css-knbk2a{height:1em;width:1. 5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} According to anecdotal evidence from the Department for Business, Energy and Industrial Strategy (BEIS), demand for electricity was 2. 3% lower than seen in July 2021 (that may have been influenced by the higher than usual temperatures).

Anecdotal evidence suggests that there may be some signs of changes in consumer behaviour and lower demand in response to increased prices. This is further shown in our recent Consumer price inflation, UK: July 2022 bulletin where electricity prices rose by 54% in the 12 months to July 2022. Updated at 02.

40 EDT 42m ago 02. 07 Britain’s services sector led the recovery in July, growing by 0. 4% The information and communication sector grew by 1.

5% and was the largest contributor to the services growth in July. 47m ago 02. 02 UK economy grew 0.

2% in July Just in: The UK economy returned to growth in July. UK GDP rose by 0. 2% in July, the latest data from the Office for National Statistics shows, a smaller increase than expected.

That’s a welcome return to growth, after the economy shrank by 0. 6% in June – as the extra bank holidays to mark the Platinum Jubilee hit economic output. But it could only be a temporary respite, with the cost of living crunch hitting households and businesses this autumn and winter.

More details to follow…. Updated at 02. 24 EDT 1h ago 01.

53 Economy could feel chill from national mourning Economists fear that next week’s bank holiday for the Queen’s state funeral, and the impact of national mourning, could push the economy nearer to recession. Growth could be weaker than normal in August, as Monday 19th won’t be a normal working day. That could lead to lost trade at restaurants, bars and concert venues, as people pay their tributes to Queen Elizabeth.

Simon French , chief economist at the City broker Panmure Gordon , said one-off bank holidays in 2002, 2012 and earlier this year had lowered economic output by at least £2bn. French told the Sunday Times: . css-knbk2a{height:1em;width:1.

5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} “There are few parallels for this moment and that makes forecasting particularly difficult. We may not simply be talking about an extra bank holiday. There could be a prolonged period of national mourning.

” Some companies, including Selfridges and Liberty , decided to close their stores last Friday as a mark of respect. Businesses shut, events cancelled and rates decision delayed after Queen’s death Read more Government guidance published last week encourages companies to consider cancelling or postponing events during the period of mourning, especially on the day of the state funeral. Events, including the TUC Congress , have been postponed, as have some sporting events including last weekend’s football fixtures.

1h ago 01. 39 Introduction: UK’s July GDP report in focus Good morning, and welcome to our rolling coverage of business, the world economy, and the financial markets. It’s a crunch week for data showing the health of Britain’s economy, and we begin by discovering how the UK performed in July.

The latest UK GDP report, due at 7am BST, is expected to show a return to growth, after the economy contracted by 0. 1% in the second quarter of the year. Some economists are predicting the economy grew by 0.

4% in July, after economic activity in June was affected by the Platinum Jubilee, which meant two fewer working days that month. UK GDP to April-June 2022 Alvin Tan of RBC Capital Markets predicts the economy grew by around 0. 3% in July: .

css-knbk2a{height:1em;width:1. 5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} The fall in UK June GDP of 0. 6% m/m from the extended Jubilee bank holiday was considerably less than expected with some sectors, most notably recreation and hospitality, actually benefiting from the holiday weekend.

A large degree of the impact of events such as June’s extra bank holiday tends to be on the timing of activity with most recovering in the subsequent period. We look accordingly for UK July GDP to bounce 0. 3% m/m.

We also look for UK Q3 GDP growth of 0. 2% Alert UK GDP figures due in 30 mins Potential Large Vol / Market Impact event. #Trading #FTSE — TradeInflection (@Tradeinflection) September 12, 2022 Data due later this week will show the soaring living costs facing households, as my colleague Zoe Wood explains: .

css-knbk2a{height:1em;width:1. 5em;margin-right:3px;vertical-align:baseline;fill:#C70000;} City economists are forecasting a further rise in inflation to 10. 2% in August when official figures are published on Wednesday, as the rising price of a weekly shop and sky-high energy bills add to the financial pressure on struggling households.

This would mark a modest uptick from the July reading of 10. 1%, which was the first time the consumer prices index had risen above 10% since the early 1980s Fragile state of UK economy scrutinised as nation mourns Read more We also get the latest UK unemployment data tomorrow, and retail sales figures on Friday which may show a drop in spending, as stretched consumers cut back. The agenda 7am BST: UK GDP report for July 7am BST: UK balance of trade for July 9am BST: European Central Bank survey of monetary analysts 11am BST: NIESR’s estimate of UK GDP in August 1pm BST: India’s inflation and industrial production data Topics Business Business live Economics Stock markets FTSE Economic growth (GDP) UK cost of living crisis Reuse this content.