The UK economy stood stagnant in July, according to new figures from the Office for National Statistics (ONS).
GDP (gross domestic product), a key measure of economy growth, is estimated to have shown no growth for the month, following an uptick of 0.4% in June and a fall of 0.1% in May.
It reflects, across key sectors, services and construction both growing in July, by 0.1% and 0.2% respectively, while production fell by 0.9%.
For the three months to July, however, GDP grew by 0.2%.
Ben Jones, CBI lead economist, said: “The sunshine may have lifted consumers in July, but the broader economy stayed stuck in the shade. Growth was uneven across sectors, highlighting that underlying demand remains more fragile.
“Speculation about new business taxes is casting a long shadow. Amid rising cost pressures, firms are already holding back on hiring and investment and are wary of weeks more Budget uncertainty.
“The government cannot tax its way to growth and continue to raid corporate coffers. With the Autumn Budget fast approaching, the Chancellor must deliver a decisive, pro-growth package by committing to serious tax reform. It’s the structure of our system – from punitive business rates to the restrictive VAT threshold and stamp duty – that holds back economic progress, not just the rates themselves.”
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