Despite this recovery, the economy showed no growth in July, as reported by the Office for National Statistics, which raises concerns about the sustainability of the recovery.

The manufacturing and construction sectors particularly struggled, with production output declining by 0.8% and construction output falling by 0.4%.

This stagnation in July fell short of economists' expectations for a slight increase, highlighting ongoing economic challenges under the leadership of Sir Keir Starmer.

High interest rates continue to squeeze both businesses and consumers, leading to increased costs and wage pressures, which could result in higher redundancies.

The British economy is slowly recovering after experiencing a technical recession, marked by two consecutive quarters of contraction at the end of 2023.

Analysts have expressed concern over the stagnation, noting that while the services sector saw a slight boost from summer sporting events, it was insufficient to offset declines in production and construction.

In contrast, the services sector grew by 0.1% in July, but this growth was not enough to prevent an overall stagnation.

The Bank of England is set to meet next week to discuss interest rates, following a rate cut for the first time in four years last month.

Investment strategist Lindsay James remarked that the UK's economic growth appears to be stuttering, with July's data indicating no growth and previous growth rates falling below expectations.

This lack of growth poses a setback for Chancellor Rachel Reeves ahead of her 'growth agenda' Budget scheduled for October.

In a bid to improve public education funding, the Labour government is considering taxing private schools at 20% starting in January 2025, which could impact around 600,000 children.

Despite the current stagnation, there are some positive forecasts, including an IMF projection of 0.7% GDP growth for the UK in 2024, indicating potential for recovery.