Sterling falls after UK economy stagnates in July

Published 12/09/2025, 08:16
Sterling falls after UK economy stagnates in July

Investing.com -- Sterling declined on Friday after data showed the UK economy stagnated in July as expected, following 0.4% growth in June.

Following the release of these figures, sterling fell to an intraday low of $1.3542 from $1.3558 beforehand.

The euro rose against the pound, reaching 0.8656 pounds from 0.8651.

The Office for National Statistics reported that UK gross domestic product was unchanged on a monthly basis in July, marking a substantial slowdown from the previous month’s expansion.

The economic stagnation increases pressure on the Bank of England to continue easing monetary policy.

Services and construction sectors showed modest growth of 0.1% and 0.2% respectively, but these gains were offset by a 0.9% decline in production.

On an annual basis, the UK economy expanded by 1.4% in July, unchanged from the prior month.

The data represents another challenge for the government ahead of November’s autumn budget.

The ONS also reported an unexpected decline in manufacturing and industrial production in July, while the trade deficit widened to £10.3 billion in the three months to July.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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