The economy struggled to regain ground in July, with a growth cent of 0.2%, according to official figures released today.
Analysts had predicted a 0.4% rebound following a 0.6% decline in the previous month, so this performance will raise new concerns about the health of the UK public company.
Production and building slowed economic activity, while there are indications that families are reducing their energy consumption.
There are also concerns that a bank holiday to commemorate the state funeral of the Queen may reduce GDP by $2 billion.
This week, a plethora of economic statistics will shed light on the difficulty facing incoming prime economy Liz Truss.
Ms. Truss has already taken action to combat the rising cost of living by unveiling a £150 billion government plan to halt the rise in energy prices.
The economy struggled to regain ground with a 0.2% increase in July, according to official data released Thursday.
This should relieve pressure on households and may even postpone a recession, while adding to the United Kingdom’s mountain of debt.
The Office for National Statistics is anticipated to publish on Wednesday that inflation remains at a 40-year high, with the headline CPI rate increasing from 10.1 cent in July to 10.2 cent in August.
The ONS reported that the services sector contributed the most to the rebound in July, expanding by 0.4%.
This followed a 0.5% decline in the industry from May to June.
According to the ONS, both the Women’s Euro Championship and the Commonwealth Games boosted economic activity.
In July, however, both production and construction decreased by 0.3% and 0.8%, respectively, marking the second consecutive month of contraction.
The ONS cited “anecdotal” evidence that individuals are consuming less energy and gas as prices rise, although the hot weather may have also contributed to a decline in demand.
The June GDP number was affected by the Queen’s Jubilee bank holiday.
The bank holiday on Monday could create a fresh obstacle for the economy. According to Panmure Gordon’s Simon French, prior one-off bank holidays reduced output by up to £2 billion.
According to Panmure Gordon, this will result in a 0.1% contraction of the economy in the current third quarter, as opposed to a 0.1% expansion.
The Queen’s Platinum Jubilee Bank Holiday had a less severe economic impact, according to Investec specialists.
French stated that few analogies exist. We may not merely be discussing an additional holiday. A protracted period of national mourning is possible.’
Following the death of the Queen last week, some companies and sporting and entertainment events were impacted.
This week, a plethora of economic statistics will provide light on the difficulty facing incoming Prime Minister Liz Truss (pictured).
The new impediment to economic activity threatens to impede an economy already hampered by the rising cost of living.
Real wages are decreasing at a record rate, as wage packages continue to lag behind inflation despite salary increases.
Tomorrow’s labor market figures will indicate whether the gap has increased further.
But Truss’s large-scale expenditure initiative should alleviate the suffering when inflation declines. Some economists believe it has already reached its pinnacle.