There was no growth for the UK economy in July, for the second month in a row.
The service sector showed slight growth, boosted by a summer of sport including the Euros, the Olympics and Wimbledon, but this was offset by decreases in manufacturing and construction, the Office for National Statistics (ONS) said.
Economists had forecast that gross domestic product (GDP) would grow by 0.2%.
Longer term figures show that the economy grew by 0.5% in the three months to July, compared with the three months to April.
The new government has stressed the importance of sustained economic growth to improve the country’s prosperity and people’s living standards.
Chancellor Rachel Reeves said she was “under no illusion” about the scale of the challenge, adding that she would “be honest with the British people that change will not happen overnight”.
Anna Leach, chief economist at the Institute of Directors, commented: “Consumer spending this year should continue to be supported by some headwinds having abated, particularly inflation and interest rates, as well as beneficial tailwinds from strong household balance sheets and low unemployment.”
She warned, however, that the outlook for business investment is “rather more uncertain”.
“It is important that the forthcoming Budget delivers a strong and positive message on growth. To reinforce business confidence to grow and invest, businesses need a predictable and efficient tax system, and growth-supporting policies.”
