A report from the Office of National Statistics (ONS) estimates that gross domestic product (GDP) grew by 0.2% in July 2022.
This follows a decline in June, which saw the economy shrink by 0.6%.
While 1.1% above pre-pandemic levels, GDP still remains below the level seen in May, with soaring inflation contributing to the slow recovery. Compared to the previous three months, GDP was flat in the three months to July.
The main driver of growth was the services sector, with an increase of 0.4% boosted by the Women's Euros and Commonwealth Games. The largest contribution to the sector came from information and communication, which grew by 1.5%.
Production fell by 0.3% and construction was down by 0.8%, largely affected by rising energy costs and an increase in the costs of materials.
Output in consumer-facing services increased by 0.6% in July but still remains 4.3% below pre-pandemic levels.
Kitty Ussher, chief economist at the Institute of Directors, said:
"Businesses will be reassured to hear that the economy grew in July, at around its long-term trend rate. When looking at the last three months together, it shows the economy flatlining as the impact of higher inflation works its way through the system."
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