The economy grew by less than expected in July, with the sharp climb in energy tariffs possibly pushing down demand for electricity and a leap in the cost of materials hitting the construction sector.
Gross domestic product expanded by 0.2% from June, official data released this morning showed weaker than a median forecast of 0.4% and leaving the economy at risk of falling into a recession.
In the three months to July, GDP was flat compared with the previous three-month period.
“Anecdotal evidence suggests that there may be some signs of changes in consumer behaviour and lower demand in response to increased prices,” the Office for National Statistics (ONS) said regarding a 3.4% fall in power generation.
Gross domestic production had fallen by 0.6% in June, which included two days of public bank holidays to celebrate the late Queen Elizabeth’s 70 years on the British throne.
An ONS spokesperson said the impact of the holidays was not a big factor in July.
