Growth in economy ‘reduces risk of recession’

THE economy grew by 0.3% in July, reducing the risk that the UK is heading for a recession, according to the Office for National Statistics.

Officials said construction, manufacturing and the allimportant services sectors all grew in July, although agriculture fell.

However, averaging out over the three months, only services grew which meant that, overall, the UK economy flatlined in the three months to July, sitting firmly at 0%.

ONS head of GDP Rob Kent-Smith said: “GDP growth was flat in the latest three months, with falls in construction and manufacturing.

“While the largest part of the economy, services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019.

“The trade deficit narrowed due to falling imports, particularly unspecified goods (including non-monetary gold), chemicals and road vehicles in the three months to July.”

Howard Archer, chief economic adviser at the EY Item Club, said: “While GDP growth of 0.3% month on month in July looks to go a long way towards guaranteeing that the economy will return to growth in the third quarter, disappointing survey evidence for August relating to manufacturing, construction and services activity as well as retail sales suggests that the economy is currently finding life challenging as it is hampered by serious uncertainties relating to Brexit, the domestic political situation and the global economy.”