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UK economy flatlines in grim news for Reeves
The Guardian
|September 13, 2025
The UK economy flatlined in July, according to official figures, in grim news for Rachel Reeves as she gears up for a challenging budget.
It was a slowdown compared with June, when the economy grew by 0.4%, according to the Office for National Statistics.
GDP expanded strongly in the first half of the year, making the UK the fastest-growing economy in the G7, but it had been widely expected to slow in the second half. The ONS said growth in the services and construction sectors in July was offset by a 0.9% fall in the production sector, which includes manufacturing.
The downbeat data will raise questions about Labour's promise to kickstart the economy.
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