The UK’s economy has grown faster than expected in the three months to July, reducing fears that the country might fall into a recession.
The Office for National Statistics revealed this morning that the economy grew 0.3% in July, predominantly due to the services sector. This was the only positive contributor to gross domestic product (GDP) growing by 0.2%.
GDP remained level in the three months to July 2019, an improvement from 0.2% reduction from April to June this year.
Output in both the production and construction sectors contracted, by 0.5% and 0.8% respectively. Within production, manufacturing fell by 1.1%.
Growth in the services sector - which accounts for about 80% of the UK economy helped to drive July's total growth figure, the ONS warned that major threats to the sector remain.
The Head of GDP at the ONS, Rob Kent-Smith said: “While the largest part of the economy, the services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019.
All components apart from agriculture showed growth, the ONS revealed.