TOP NEWS: UK GDP rebounds less than expected in July; trade gap cut

(Alliance News) - UK gross domestic product rebounded by less than expected in July, official data showed on Monday.

The UK economy expanded 0.2% month-on-month in July, the Office for National Statistics said. This marked a recovery from June's 0.6% slide, but undershot market forecasts for 0.5% growth.

Services grew by 0.4% in July after a fall of 0.5% the month before. This was the main driver behind the rise in GDP.

Production fell 0.3%, trimming but extending June's 0.9% fall, and construction declined 0.8% after a fall of 1.4% in June.

Annually, GDP rose 2.3% in July, accelerating from June's 1.9% rise.

In the three months to July, the UK economy stagnated entirely as a 0.2% decline in services offset growth of 0.6% in production and 1.4% in construction.

Separately, the ONS said the UK trade deficit slimmed to GBP19.36 billion in July from GBP22.85 billion in June.

By Lucy Heming; lucyheming@alliancenews.com

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