UK July monthly GDP +0.2% vs +0.4% m/m expected

• Prior -0.6%
• GDP 0.0% vs +0.1% 3m/3m expected
• Prior -0.1%

Looking at the details, services was the main contributor to the rise in GDP as it grew by 0.4% in July - after a fall of 0.5% in June. Information and communication grew by 1.5% and was the largest contributor to the services growth in July. Meanwhile, production fell by 0.3% on the month mainly because of a fall of 3.4% in electricity, gas, steam, and air conditioning supply.

Overall, monthly GDP is now estimated to be 1.1% above its pre-pandemic levels i.e. February 2020:

The miss on estimates will not provide too much comfort for the UK economic outlook, which looks set to worsen significantly heading into the year-end amid soaring inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term pressures and the cost-of-living crisis.