UK economy stalls, dealing blow to new government [Video]

Britain’s economy stalled again in July, official data showed Wednesday, dealing a blow to the new Labour government that has put growth expansion at the top of its priority list.

Gross domestic product showed zero growth in the reported month compared with June, when output also flattened, the Office for National Statistics (ONS) said in a statement.

Analysts had predicted a slight uplift in growth for July, while previous data showed the UK economy grew at a slightly slower pace in the second quarter compared with the first.

Prime Minister Keir Starmer’s Labour government won power at the start of July, ending 14 years of Conservative rule.

“I am under no illusion about the scale of the challenge we face and I will be honest with the British people that change will not happen overnight,” finance minister Rachel Reeves said in response to Wednesday’s data.

“Two quarters of positive economic …