The UK economy stagnated for the second straight month in July, with weak performance in construction and manufacturing. Growth in services was minimal at 0.1%, and economists had expected stronger overall growth. This stagnation is a challenge for Chancellor Rachel Reeves as Labour prepares its first budget, aiming to boost growth. Markets expect the Bank of England to hold interest rates at 5% next week, with a potential cut in November. The figures suggest a sharper-than-expected slowdown, with economists downgrading growth forecasts for Q3 2024.