UK GDP Growth Cools to Six-Month Low in July

Source: Office for National Statistics

The United Kingdom’s gross domestic product (GDP) growth slowed to a six-month low in July, as construction continued to contract while services were generally flat. EWU is up 0.95% premarket.

• The GDP grew by 0.1% in July, slower than 1.0% in June and 7.3% in July 2020. This is 2.1% below the pre-COVID-19 level in February 2020.
• Construction fell for the fourth straight month, noting a 1.6% decline in output. This is 1.8% lower than the pre-COVID-19 levels.
• Services were generally unchanged, following the 1.5% growth in June. The sector remains 2.1% below pre-pandemic levels.
• Growth for the month was driven by production, with output up by 1.2%. The strength came amid the reopening of an oil site after temporary maintenance.
• Activities involving arts, entertainment, and recreation climbed 9.0%, owing to clubs, parks, and festivals, as social distancing restrictions were eased starting July 19.
• Consumer service output slipped for the first time in six months at -0.3% due to the 2.5% decline in retail sales.