Closing post
Time to wrap up….
The UK economy flatlined in July, according to official figures, in grim news for Rachel Reeves as she gears up for a challenging budget.
It was a slowdown compared with June, when the economy grew by 0.4%, according to the Office for National Statistics.
GDP expanded strongly in the first half of the year, making the UK the fastest-growing economy in the G7, but it had been widely expected to slow in the second half.
The ONS said that growth in the services and construction sectors in July was offset by a 0.9% fall in the production sector, which includes manufacturing.
The downbeat data will raise questions about Labour’s promise to kickstart the economy.
A Treasury spokesperson said:
“We know there’s more to do to boost growth, because, whilst our economy isn’t broken, it does feel stuck. That’s the result of years of underinvestment, which we’re determined to reverse through our plan for change.”
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In other news
Ocado’s shares have plunged 20% after its US partner, grocery giant Kroger, signalled a potential retreat from investment in automated warehouses.
US consumer confidence has dropped, on worries about job security and rising prices
Russia’s central bank has lowered interest rates by one percentage point, less than expected
Updated
Ocado shares end day down 20%
Oof! The London stock market has just closed, cementing a terrible day for Ocado.
Ocado’s shares have ended the day down 19.9%, at 240p, as City investors react to the news that its US partner Kroger was considering a potential retreat from investment in automated warehouses.
That knocks £500m off Ocado’s market value, as the company was worth just over £2.5bn at the start of the day.
Chris Beauchamp, chief market analyst at IG, says:
“It is hard to overstate how damaging this news is for Ocado. Kroger was one of the linchpins of its expansion strategy, and was a poster boy for the use of Ocado’s technology worldwide.
Others may now follow suit. Sadly Ocado has been a losing proposition for most investors over the course of its life as a listed company, with only a brief period in 2013/14 and then from 2018-2021 really delivering the goods. Today’s news casts a dark shadow over the company and its long-suffering investors.”
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