UK Economy Flatlines in July Ahead of Rachel Reeves’ Budget

UK economy flatlined in July – but is it all bad news?

Last Updated: September 12, 2025By Mike Sivier

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The UK economy flatlined in July, according to official figures, in grim news for Rachel Reeves as she gears up for a challenging budget, according to The Guardian:

It was a slowdown compared with June, when the economy grew by 0.4%, according to the Office for National Statistics.

GDP expanded strongly in the first half of the year, making the UK the fastest-growing economy in the G7, but it had been widely expected to slow in the second half.

The ONS said that growth in the services and construction sectors in July was offset by a 0.9% fall in the production sector, which includes manufacturing.

The downbeat data will raise questions about Labour’s promise to kickstart the economy.

Then again, other economists see cause for optimism. Here‘s the BBC:

Rob Wood, chief UK economist at Pantheon Macroeconomics, said the UK’s finances were “looking pretty resilient to the barrage of shocks faced this year”.

Source: UK economy flatlines in July in grim news for Rachel Reeves | Economic growth (GDP) | The Guardian
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