The UK economy failed to grow in July, according to the latest official figures.
The Office for National Statistics said the economy saw zero growth in the month, following a 0.4% expansion in June.
The government is under mounting pressure to deliver on its key priority of boosting economic growth as the next Budget is coming up.
Chancellor Rachel Reeves will outline the government’s tax and spending plans on 26 November with increasing speculation she will have to raise taxes.
Liz McKeown, director of economic statistics at the ONS, said: “Within services, health, computer programming and office support services all performed well.
“The falls in production were driven by broad-based weakness across manufacturing industries,” she added.
Some businesses are believed to be keeping plans for hiring and investment on hold until they find out what tax rises may be announced in the Budget.
Yael Selfin, chief economist at KPMG UK, said: “The later date of the Autumn Budget could prolong some uncertainties for businesses, delaying investment decisions and acting as a drag on growth until more clarity emerges.
“With sources of growth set to remain limited over the coming months, the Autumn Budget provides the government with an opportunity to set out credible supply-side policies that can boost long-term growth while supporting a near term recovery in sentiment.”
