The UK economy picked up slightly in July

The UK economy returned to growth in July after contracting last month, fueled by a revival in the services sector despite worsening cost-of-living pressures.

Gross domestic product rose 0.2 percent on the month, according to data from the Office for National Statistics.

Economists polled by the Wall Street Journal had expected the economy to grow by 0.3%.

The service sector was the main driver of growth in July, while industrial production and construction output fell on the month, the ONS said.

Gross domestic product was flat in the three months to July compared with the previous three months.

The UK economy is expected to slow in the coming quarters as high inflation takes a heavy toll on consumption and investment.

The Bank of England predicted in August that the country’s economy would enter recession by the end of the year. But the government’s energy support package should tame price growth and support real incomes, significantly reducing the risk of the economy slipping into a deep recession, economists said.

Write to Xavier Fontdegloria at

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