The UK economy shrank more than expected in July as figures from the Office for National Statistics (ONS) showed the economy contracted by 0.5%.
The figures were worse than analysts had predicted and continue a trend of weak economic growth in the UK.
David Bharier, Head of Research at the British Chambers of Commerce, said: “The figures showing GDP grew by 0.2% in the three months to July, with a 0.5% decline in July itself underlines the precarious state of the economy.
“Small and medium-sized businesses continue to battle against stubbornly high inflation, rising interest rates, trade barriers with the EU, higher taxes, and an uncertain labour market.
“Our latest Quarterly Economic Forecast, published last week, expects GDP to flatline over the next two quarters, leading to 0.4% growth for this year. Longer term growth is also expected to be less than 1% for 2024 and 2025.
“Businesses need to see a clear framework from politicians, outlining how long-term investment can be unlocked, and economic growth accelerated.”
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