The British economy stagnates in July, GDP data shows

The British economy stalled in July after the rise of 0.4% in June, the official figure showed on Friday.

Economists surveyed by Reuters estimated zero growth for this month.

The British economy grew strongly with this new standard in the first half of 2025, expanding 0.7% in the first quarter of this year and 0.3% in the second – in part because of higher government spending and exporters who tried to send goods before the imposition of US tariffs.

But economists expect slower growth in the second half because the tariff burdens global demand and the British labor market weakens. Last month, before the release of the second quarter data, the Bank of England estimated an annual growth of 1.25% for this year far below an average of 2% between 2010 and 2019.

Finance Minister Rachel Reeves said on Thursday that the British economy was “not damaged, but felt jammed”.

He hopes that the pro-growth steps ahead of his annual budget on November 26 will lead to a more favorable assessment than the British prospect of the office for the budget responsibility.

But some businesses say they maintain the planned recruitment and investment detained, because they are waiting for the details of the Labor Law that is harder and whether they will be the main target for tax increases.
Source: Reuters