- Economists from Investec and Pantheon Macroeconomics predict that official figures will show a 0.1 per cent contraction in UK GDP for July due to weak retail activity and higher household energy costs.
- The anticipated economic dip marks a downbeat start to the tenure of Andy Burnham, who assumed office as Prime Minister after replacing Keir Starmer in the second half of July.
- The expected monthly contraction follows a strong June performance where the economy expanded by 0.3 per cent, helping push overall growth across the second quarter to 0.4 per cent.
- Experts suggest a 13 per cent uplift in the energy price cap and a 0.5 per cent fall in retail sales constrained household budgets, offsetting earlier economic gains.
- While retail and wholesale output slipped, hospitality businesses benefited from a surge in accommodation and food services spending driven by hot weather and England's World Cup run.
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