The UK economy stagnated in July, posing challenges to Chancellor Rachel Reeves as any tax hikes or spending cuts would again dampen growth prospects.
Real gross domestic product showed no growth in July, as expected, after rising 0.4 percent in June, the Office for National Statistics reported Friday.
The dominant services sector expanded 0.1 percent and construction grew 0.2 percent.
Meanwhile, industrial production fell 0.9 percent, in contrast to the 0.7 percent growth posted in June. Similarly, manufacturing output was down 1.3 percent after a 0.5 percent gain.
Year-on-year, growth in industrial output eased to 0.1 percent from 0.2 percent. Manufacturing advanced only 0.2 percent after flat growth in June. On a yearly basis, GDP was up 1.4 percent in July but slightly slower than the economists' forecast of 1.5 percent.
In the three months to July, real GDP advanced 0.2 percent, following a 0.3 percent rise in the three months to June. The service sector was the main contributor to real growth.
Compared with the same period last year, GDP registered 1.2 percent expansion in the three months to July.
Today's data showed the economy had a subdued summer, British Chambers of Commerce Research Manager Stuart Morrison said.
Morrison said there must be no more taxes on business in the Autumn Budget. He urged the Chancellor to focus on unlocking growth and productivity through business.
The Chancellor is set to deliver the Autumn budget on November 26. Reeves said the economy is no broken, but it does feel stuck.
"The sunshine may have lifted consumers in July, but the broader economy stayed stuck in the shade," Confederation of British Industry Lead Economist Ben Jones said. "Growth was uneven across sectors, highlighting that underlying demand remains more fragile."
Another report from the ONS showed that the visible trade deficit remained broadly unchanged in July. The trade gap totalled GBP 23.68 billion compared to GBP 23.65 billion in June.
At the same time, the surplus on services dropped to GBP 15.28 billion from GBP 15.42 billion in the previous month. As a result, the total trade balance posted a deficit of GBP 8.4 billion versus a GBP 8.23 billion shortfall a month ago.
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