The UK economy flatlined in July as the biggest contraction for a year in the manufacturing sector offset a bumper month on the high street.
The Office for National Statistics (ONS) said there was zero growth in gross domestic product (GDP) month on month in July, against 0.4% growth in June.
It came after the manufacturing sector saw activity pull back by 1.3% - the biggest contraction since July 2024.
This held back growth in the wider economy, with the services sector up 0.1% thanks to expansion of 0.6% for retail and construction growing 0.2%.
Liz McKeown, ONS director of economic statistics, said: "Falls in production were driven by broad-based weakness across manufacturing industries."
In response to the latest GDP data, a Treasury spokesperson said: “We know there's more to do to boost growth because whilst our economy isn't broken, it does feel stuck.
“That's the result of years of underinvestment, which we're determined to reverse through our plan for change.
“We're making progress: growth this year was the fastest in the G7; since the election, interest rates have been cut five times and real wages have risen faster than they did under the last government.
“There's more to do to build an economy that works for, and rewards, working people.”
The pound weakened following the GDP report showing the UK economy failed to grow in July.
Sterling was down 0.2% at $1.355 against the US dollar on Friday morning.
Tory shadow chancellor Sir Mel Stride said: “Any economic growth is welcome - but this Government is distracted from the problems the country is facing.
“While the Government lurch from one scandal to another, borrowing costs recently hit a 27-year high - a damning vote of no confidence in Labour that makes painful tax rises all but certain.
“It is little wonder that Starmer has stripped Reeves of control over the budget. But sidelining her is not enough - he must also reject her failed economic approach that has left Britain poorer.”
