The UK economy failed to grow in July, with weakness in manufacturing and energy production dragging on output, according to new figures.
The Office for National Statistics (ONS) said the economy saw zero growth in the month, following a 0.4% expansion in June.
Across the three months to July, the economy expanded by 0.2% compared with the previous quarter. But the ONS said the largest negative contributor to that rolling figure came from manufacturing, which fell 1.1%. It was joined by steep drops in electricity and gas supply (down 5.1%) and mining and quarrying (down 1.8%), partly reflecting falling North Sea oil and gas production. A 1.6% increase in water supply and sewerage helped offset the declines.
Services remained the main source of growth, bolstered by health, computer programming and office support activities. But analysts warned that industry’s persistent weakness is limiting momentum and leaving the economy vulnerable to shocks.
Yael Selfin, chief economist at KPMG UK, said the “weak start to the third quarter is a sign of things to come”. She added that temporary factors which lifted growth earlier in 2025 were fading, while uncertainty ahead of the Autumn Budget risked delaying investment decisions.
Chancellor Rachel Reeves will set out tax and spending plans in her 26th November Budget, with pressure mounting to deliver measures that lift business confidence and productivity.
Responding to the latest growth figures, a Treasury spokesperson said: "We know there's more to do to boost growth because whilst our economy isn't broken, it does feel stuck.
"That's the result of years of underinvestment, which we're determined to reverse through our plan for change."
Shadow chancellor Sir Mel Stride said: "Any economic growth is welcome - but this government is distracted from the problems the country is facing.
"While the government lurch from one scandal to another, borrowing costs recently hit a 27-year high - a damning vote of no confidence in Labour that makes painful tax rises all but certain."