The UK economy flatlined in July, with GDP growth stuck at 0 per cent as a sharp contraction in manufacturing weighed on activity at the start of the third quarter. Official figures from the Office for National Statistics (ONS) showed output falling short of the 0.1 per cent growth economists had forecast, underlining the fragile nature of Britain’s recovery. Services, which make up nearly three-quarters of UK GDP, edged higher by 0.1 per cent, while construction posted a 0.2 per cent gain, helping to soften the blow. Treasury officials acknowledged the economy “feels stuck” after years of underinvestment, but pointed to progress on wages, interest rates and G7-leading growth earlier this year. Sterling slipped against both the dollar and euro following the release, while gilt yields ticked higher and UK equities traded mixed in early London trading.