The British economy is hiking in July, where it is slow

Economic growth in the UK is flat in July, according to the data published on Friday, adding to the headache of Chancellor Rachel Reeves before the autumn budget.

The number was in line with Reuters’s economists’ expectations, followed by 0.4 % expansion in June.

In July, the weakness in production production, which contracted 0.9 %, was concentrated, while services and building outputs were somewhat increased, and the UK National Statistics Office indicated.

It comes after the economy has grown Better than expected 0.3 % In the second quarter, although this lower of abundance grows by 0.7 % in the first quarter.

Economists are now expecting a slowdown to the UK seizure in the last half of 2025.

“After amazing the second quarter, as the UK got the fastest growth rate among the Group of Seven, all signs indicate a slowdown in economic activity in the second half of the year.”

He added in the comments via e -mail: “Correcting the course in the trade trade, storing, and net acquisitions of precious metals, and the public sector spending, as we believe, will witness growth in the United Kingdom slowly in the second half of 2025.”

The economic slowdown is a blow to the government before Fall Budget on November 26A high -level event for Reeves, who promised to finance spending through tax receipts, instead of borrowing, and reducing UK debt over the next few years.

As such, any potential tax increase is a special concentration, suggested by Paul Dales, the UK’s chief economist at Capital Economics, in a memo on Friday.

“The recession in the real gross domestic product in July … indicates that the economy is still struggling to obtain a decent momentum in the face of clouds from previous increases in taxes and more potential tax increase in the budget,” he said.

Meanwhile, the Bank of England is trying to weigh the financial uncertainty with sticky inflation (Which rose to 3.8 % of expected in July).

“The soft performance of the economy in July may not suffice to compensate for the growing inflation fears of England,” Dalis.

Fabio Balnnin, the European chief economist in HSBC, struck a similar tone, CNBC told last week that “the flexibility of inflation is clearly making it difficult for central banks to reduce more.”

“After that, on the other hand, you have financial concerns, it is still a very large financial deficit, starting from the United Kingdom, for example, with a very difficult decision waving on the horizon of the government with the autumn budget.”

The Bank of England is scheduled to meet in the meantime on September 18, but it is expected to keep the fixed prices after that Cut them in August. After that, the monetary policy committee of nine members of the bank voted by a 5-4 majority to reduce the main interest rate, the “bank price”, by 25 basis points to 4 %, saying it was taking a “gradual and accurate” approach to cash dilution.

The central bank meeting on November 6 is now in the spotlight, especially because it comes before the budget.

“We still expect a rate of November to be reduced, although August’s decision is the weakest of our condemnation,” said Carsten Barzeeski, Macro’s global head of Engy.