Official results indicated that the UK surprisingly failed to expand in July, following a flat June.

For July, analysts had predicted a mere 0.2% gain.

While industrial and construction output also decreased, the services sector had a lift from a summer filled with sporting events, including the Olympics and the Euros.

The difficulty for the newly elected Labour administration, which has prioritised economic development, is another month without growth.

The BBC piece states that the health sector, which had recovered from June's strike action, and computer programmers were the main drivers of services development. However, there was a decline in the production of engineers, architects, and advertisers.

The gross domestic product, or GDP, is tracked monthly by the ONS, although trends over a three-month period are given greater consideration.

Monthly totals are an approximation and are frequently updated once further data becomes available.

The UK entered a slight recession at the end of last year, with the GDP contracting for two consecutive three-month periods. However, 2024's first half witnessed a return to growth.

Since taking power at the beginning of July, the newly elected Labour Party has stated that it aspires to see the UK's economy expand at the quickest rate among the G7.

While acknowledging the magnitude of the task, Chancellor Rachel Reeves declared that she would "be honest with the British people that change will not happen overnight."

Reduced growth also translates into lower tax revenue, which limits the government's options for the upcoming October budget.

(Sources: bbc.co.uk)