In July, UK Economy Grew More Slowly Than Expected

According to official data, the UK economy grew by 0.2% in July, following a sharp drop the previous month. According to the Office for National Statistics, the services sector contributed the most to growth, which was aided by the UK hosting the Women's Euro Championship. However, while the economy expanded in July, it did so at a slower pace than the 0.3% expansion predicted by analysts.

GDP fell in June as a result of the extra bank holiday for the Queen's Jubilee. GDP, which measures all goods and services produced in the United Kingdom, fell by 0.6% in June due to two fewer working days. According to analysts, the bank holiday for Queen Elizabeth's state funeral on September 19, as well as the 10 days of national mourning, could have an impact on economic growth and push the UK into recession sooner than expected.

The Bank of England predicted last month that the UK would enter a recession by the end of this year. A recession is defined as two consecutive quarters of declining output or three-month periods. The economy shrank by 0.1% between April and June compared to the previous quarter. The Women's Euro Championships, which England won, and the Commonwealth Games boosted the economy in July. Used car sales were also strong. However, there was evidence that consumer spending remained constrained due to rising prices, with inflation reaching a four-decade high of 10.1% in July.