The UK economy failed to grow in July according to the Office for National Statistics, but the British Chambers of Commerce (BCC) said businesses should look beyond that figure as there had been 05% growth in the three months to July.
David Bharier, Head of Research at the BCC, said: “It is important to look at the broader picture and growth of 0.5% in the three months to July is positive news.
“It shows the UK economy is continuing to expand at a steady rate going into the second half of the year. The services sector remains the biggest contributor to growth.
“It is, however, concerning that monthly GDP growth has flatlined for the second month in a row, with production and construction also struggling in July.
“Our latest economic forecast, published last week, which now expects 1.1% growth for the whole of 2024. As the inflation crisis has begun to ease and a clearer path has emerged on interest rate cuts, more SMEs are seeing increased confidence.
“However, businesses are still struggling to increase investment and trade due to continuing global economic and political uncertainty. Until those barriers are lowered, wider economic growth will stay limited.
“Next month’s budget will be a critical moment. Businesses understand the fiscal backdrop the Government is facing and the need to address public finances, but that must not be at the expense of investment and growth.”
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