The UK is in the grips of a slowdown induced by higher National Insurance and low consumer confidence, caused in large part by the government’s approach to economic policy.
The UK produced zero growth in July after growing 0.4% in June and falling 0.1% in May.
In addition to rising taxes, UK growth is still suffering from a cost of living crisis and higher interest rates.
The combination is providing to be toxic and the weak economic leadership from central government is not onlt be rcognised by low or zero growth, but also by the bond market that have been dumping long dated gilts.
The pound was down against the dollar on Friday morning with GBP/USD trading at 1.3563.
Scott Gardner, investment strategist at digital wealth manager, Nutmeg, said: “Few positives can be found from this latest batch of GDP data with UK economic growth coming to a standstill during July and little sign of expansion across any of the key industries that make up the monthly reading.”
“The manufacturing industry clearly slowed heading into the summer holidays. That said, retail sales offered a slight reprieve with the good weather driving an increase in non-food spending over the month. The lack of activity across the economy during July suggests that businesses are continuing to digest the dual impact of April’s changes to National Insurance contributions and the increase in the living wage. Uncertainty both at home and abroad continues to be a barrier to sustained growth, consumer spending, and investment.”