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UK economy flatlines in July for second month running [Video]

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The UK economy flatlined in July for the second month in a row, according to the latest official figures, as the Chancellor said she is “under no illusion about the scale of the challenge” the country faces.

The Office for National Statistics (ONS) said gross domestic product (GDP) recorded no growth in July.

Economists had been expecting GDP to edge up by 0.1% in the month, according to a consensus provided by Pantheon Macroeconomics.

The UK held a general election at the beginning of the month, with some recent surveys suggesting a post-election increase in activity as businesses held out for political stability.

The latest data comes after the economy continued its recovery from recession at the end of last year, with growth of 0.6% between April and June.

It showed the country was turning a corner after dipping into a technical recession, which is defined as two consecutive quarters of negative growth.

But hopes …

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