GDP remains flat at 0.4%

Latest ONS data has shown that GDP showed no growth in July 2025, following growth of 0.4% in June

Real GDP grew by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from three-month-on-three-month growths of 0.3% in June 2025 and 0.6% in May 2025.

Services output grew by 0.4% in the three months to July 2025, compared with the three months to April 2025, and was the main contributor to GDP growth over this period, after growing 0.4% in the three months to June 2025.

Production output fell by 1.3% in the three months to July 2025, compared with the three months to April 2025, following a fall of 0.3% in the three months to June 2025.

Construction output increased by 0.6% in the three months to July 2025, compared with the three months to April 2025, following growth of 1.2% in the three months to June 2025.

ONS Director of Economic Statistics Liz McKeown said “From today we are changing our presentation of GDP to lead with changes across three-month periods. Growth in the economy as a whole continued to slow over the last three months. While services growth held up, production fell back further.

“Within services, health, computer programming and office support services all performed well, while the falls in production were driven by broad based weakness across manufacturing industries.

“In the latest month GDP showed no growth, with increases in services and construction offset by falls in production.”

Anna Leach, Chief Economist at the Institute of Directors, said “The economy drifted in July, although much as expected, following stronger than expected growth last month. Growth has been volatile recently stoked by tariffs, VED and stamp duty changes, meanwhile good weather and sporting events are believed have given consumer spending a lift in July.”