The growth of the British economy virtually stagnated in July. This indicates that the recovery from the corona crisis is levelling off. Moreover, the growth is much lower than economists on average had expected.
Many companies are struggling with delivery problems due to global logistical difficulties. There is also a severe shortage of staff in the United Kingdom.
Another cause could be the advance of the Delta variant of the coronavirus. Hundreds of thousands of people were forced to stay home when the National Health Service’s app reported that they may have been in contact with someone infected with the virus.
Economic growth in July was 0.1 percent compared to June. This means that the British economy is still more than 2 percent smaller than in February 2020, just before the corona pandemic broke out.
It was the weakest month for construction production since January. Then production collapsed due to a lockdown. However, oilfield production increased after summer maintenance.