The UK economy returned to growth in July after contracting in the previous month, driven by a recovery in the services sector despite mounting cost of living pressures.
Gross domestic product grew 0.2% month-on-month after contracting 0.6% in June, according to Office for National Statistics data released on Monday.
Economists polled by the Wall Street Journal had expected the economy to grow 0.3%.
The services sector was the main growth driver in July, while industrial production and construction output fell month-on-month, the ONS said.
GDP was flat in the three months to July compared to the previous three months.
The UK economy is expected to slow in the coming quarters as high inflation takes a toll on consumption and investment.
The Bank of England forecast in August that the country’s economy would enter recession by the end of the year. However, economists have said the government’s energy package should dampen price growth and support real incomes, significantly reducing the risk of the economy falling into a deep recession.
Write to Xavier Fontdegloria at [email protected]
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