The UK economy grew by 0.2% in July, according to official data, following a sharp drop in the previous month.
The Office for National Statistics said the services sector was the biggest contributor to growth, helped by the UK hosting the Women’s Euro Championship.
However, while the economy expanded in July, the growth was slower than analysts had expected.
Gross domestic product (GDP) fell in June due to the extra bank holiday for the Queen’s Jubilee.
GDP – which measures all the goods and services produced by the UK – fell by 0.6% in June because of two fewer working days.
Analysts have said the bank holiday for Queen Elizabeth’s state funeral on 19 September, as well as the 10 days of national mourning, could impact economic growth and push the UK into recession sooner than expected.
Last month, the Bank of England said it expected the UK to fall into recession at the end of this year.
A recession is defined as two consecutive quarters, or three-month periods, of shrinking output. Between April and June, the economy contracted by 0.1% compared with the previous quarter.
A bank holiday affects growth because there are fewer people at work.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, expects the Queen’s funeral to impact economic growth by 0.2%.
He said the extra public holiday could have a bigger impact on the economy than the extra day off for the Jubilee in June, “as the hospitality and tourism sector likely won’t benefit, but many businesses still will shut”.
“That said, many businesses will be able to catch up work, as most of them did in June.”
[This article is an adapted news story - the credits belongs to the original source article owner]