(ONS) said the economy saw zero growth in the month, which was in line with expectations, following a 0.4% expansion in June. However, monthly figures are volatile, and the ONS has said it will now focus on growth over a rolling three-month period. In the three months to July, the economy expanded by 0.2%

The government is under mounting pressure to deliver on its key priority of boosting economic growth ahead of the Budget on 26 November. In the Budget, Chancellor Rachel Reeves will outline the government's tax and spending plans with increasing speculation she will raise taxes to meet her self-imposed fiscal rules. The ONS said the service sector grew by 0.4% over the three months to July, helped by a good performance from the health sector, computer programming and office support services.

However, this was offset by a fall in output from the production sector, which includes manufacturing. In July itself, manufacturing contracted by 1.3% - the sharpest monthly decline since July last year. The UK economy expanded by 0.7% in the first three months of the year, and then grew by 0.3% between April and June. The ONS said the latest figures showed the economy had "continued to slow" over the past three months.

However, it is still on track to grow in the third quarter. Rob Wood, chief UK economist at Pantheon Macroeconomics, said the UK's finances were "looking pretty resilient to the barrage of shocks faced this year". The latest data also comes ahead of the Bank of England's next interest rate decision on 18 September, with policymakers weighing up flagging growth against stubborn inflation. (BBC/ Getty Images)