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UK economy unexpectedly flatlines for second month in row

September 11 2024

The UK economy flatlined in July after also showing 0.0% growth in June, according to the Office for National Statistics (ONS).

The ONS said the pre-election stalling of growth in June continued for a second month. Gross Domestic Product (GDP) growth rose by 0.5% in the three months to July.

While there was growth in the services sector led by computer programmers and the end of strikes in health, these gains were offset by falls for advertising companies, architects and engineers.

Ben Jones, Lead Economist at the Confederation of British Industry (CBI), said: 'Ahead of what promises to be a difficult Budget next month, the government is treading a narrow path to put the public finances on a sustainable footing while maintaining the confidence of business and investors in the recovery.

'The government must remain focussed on its agenda for long-term growth. This means avoiding further pressures on business costs and providing firms with the certainty and long-term commitments over tax, regulation and infrastructure that will give them confidence to invest.

'By doubling down on the recently announced planning reforms, introducing a Net Zero Investment Plan and implementing a clearer, fairer and more competitive business rates system, government has an opportunity to supercharge investment and UK growth over the next Budget period and beyond.'

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