The GDP, a gauge of all goods and services produced in the UK, stagnated in the weeks after the Labour government was elected, according to the Office for National Statistics (ONS). This marks the second month of stagnation.
According to Reuters news agency polled economists, the GDP would grow by 0.2%.
A few indicators of development
However, the services sector is showing “longer-term strength,” as evidenced by growth in the three months leading up to July and growth over the previous three months overall.
For the first half of 2024, the UK’s growth rate was the highest among the industrialized nations that make up the G7.
The end of health strikes and development in the services industry, driven by computer programmers, were counterbalanced by declines in the advertising, architectural, and engineering sectors.
According to the ONS, “a particularly poor month for car and machinery firms” caused an overall reduction in manufacturing output, while construction output also decreased.
How will interest rates be affected by it?
When the Bank of England meets next week to decide how to proceed in the battle against inflation, the market expects interest rates to stay the same.
In an effort to lower inflation, the central bank increased interest rates and increased the cost of borrowing.
