UK sees an increase in estimated GDP growth

This followed a fall of 0.6% in June 2022 - with monthly GDP now estimated to be 1.1% above its pre-Covid levels from February 2020. Looking sector by sector, the services industry grew by 0.4% in July - and was the main driver of the rise in GDP. 

However, both production and construction fell, dropping by 0.3% and 0.8% respectively. This was the second consecutive fall for both these sectors. 

Looking at figures for the three months up to July 2022, GDP remained flat - with a fall of 0.2% in services offset by rises of 0.6% in production and 1.4% in construction. Meanwhile, monthly GDP grew by 2.3% between July 2021 and July 2022 - up from 1.9% between June 2021 and June 2022. 

Responding to these figures, Stephen Millard - deputy director for macroeconomic modelling and forecasting at the National Institute of Economic and Social Research - said, despite the growth in July, it still expects the UK economy “remains in recession”, contracting by 0.1% in the third quarter of 2022.