By David Milliken and Suban Abdulla
LONDON (Reuters) – Britain’s economy recorded zero monthly growth in July, in line with economists expectations, after a strong 0.4% bounce in June, official figures showed on Friday.
Gross domestic product in July was 1.4% higher than a year earlier – unchanged from annual growth in June – but a shade lower than the 1.5% growth forecast in a Reuters poll.
Britain’s economy grew robustly by its recent standards in the first half of 2025, expanding by 0.7% in the first quarter of the year and 0.3% in the second – partly due to higher government spending and exporters trying to ship goods before the imposition of U.S. tariffs.
But economists expect slower growth in the second half as tariffs weigh on global demand and Britain’s labour market weakens. Last month, before the release of second-quarter data, the Bank of England forecast annual growth of 1.25% for this year well below the average of 2% between 2010 and 2019.
Finance minister Rachel Reeves said on Thursday that Britain’s economy “isn’t broken, but it does feel stuck”.
She hopes that pro-growth measures in the run-up to her annual budget on November 26 will lead to a more favourable assessment of Britain’s prospects from the Office for Budget Responsibility.
But some businesses say they are keeping hiring and investment plans on hold, as they await details of tougher employment legislation and whether they will be the main target again for tax rises.
(Reporting by David Milliken; editing by William James)
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