GDP falls by half a percent

This dip – driven by drops in output across the services, production and construction sectors of 0.5%, 0.7% and 0.5% respectively – follows the 0.5% worth of growth recorded last month. July was also the first month where all three sectors contributed negatively to GDP in the month since June 2022.  

July’s monthly GDP also showed no growth when compared to the same period last year – this contrasts with June, where monthly GDP increased by 0.9% between 2022 and 2023.  

However, the broader picture is a bit more positive with the economy showing growth of 0.2% in the three months to July 2023 when compared with the three months to April. Broken down, production grew by 0.6%, and was the main contributing factor to the three-month growth, while services and construction output both went up by 0.1%.  

Responding to this, the ONS’ director of economic statistics Darren Morgan said: “In July, industrial action by healthcare workers and teachers negatively impacted services and it was a weaker month for construction and retail due to the poor weather. 

“Manufacturing also fell back following its rebound from the effect of May’s extra Bank Holiday. A busy schedule of sporting events and increased theme park visits provided a slight boost.”