A stagnant UK economy, renewed urgency in India’s trade negotiations with the European Union, a delay in EU climate policy talks, and a sharp decline in Ocado shares defined the day’s key economic and business developments.
UK growth stalls in July
The UK economy showed no growth in July, according to the Office for National Statistics (ONS), marking a setback for Chancellor Rachel Reeves ahead of a difficult budget.
The flatlining followed a 0.4% expansion in June, underscoring a slowdown after the UK posted the strongest growth among G7 economies in the first half of the year.
The ONS reported that gains in services and construction were offset by a 0.9% contraction in the production sector, which includes manufacturing.
On a broader measure, GDP grew by 0.2% in the three months to July compared with the previous three-month period, down from 0.3% recorded in the June quarter.
ONS director of economic statistics Liz McKeown said: “Growth in the economy as a whole continued to slow over the last three months. While services growth held up, production fell back further.”
India and EU push for Free Trade Agreement
India and the European Union are intensifying efforts to finalise a free trade agreement as New Delhi seeks to diversify export markets in the face of US tariffs.
“India and the European Union are working with sincerity and commitment to finalise a comprehensive and balanced free trade agreement,” Commerce Minister Piyush Goyal said at an industry event in New Delhi on Friday, according to an official statement.
The urgency comes after the United States imposed a 50% tariff on Indian exports.
EU Commissioner for Trade and Economic Security Maroš Šefčovič, also in India for negotiations, described the talks as “intense” and moving with “unprecedented momentum.”
Both sides are targeting an agreement by year-end.
EU Climate Goal talks delayed
Germany and France have joined forces to elevate the debate over the European Union’s proposed 2040 climate targets to the bloc’s heads of government, delaying an immediate decision on the matter.
At a meeting of ambassadors in Brussels, Germany argued that the European Commission’s plan to cut emissions by 90% by 2040 should be decided at the leaders’ summit in October, a stance already taken by France.
With the EU’s two largest economies aligned, Denmark, which holds the rotating presidency, abandoned efforts to reach a quicker qualified-majority agreement next week.
This shift means the proposal now requires unanimity from EU leaders, a more complex political hurdle than a ministerial vote.
Ocado shares drop on Kroger review
Shares in Ocado fell 13% on Friday after US retail partner Kroger signalled a reassessment of its investment in automated warehouses, a key pillar of Ocado’s international growth strategy.
Kroger’s chairman and interim CEO Ron Sargent told investors that the company was conducting a “site-by-site” review of its automated fulfilment network, which has been built in partnership with Ocado.
The remarks followed a broader strategic review of Kroger’s e-commerce operations initiated in June.
“We’re examining all aspects of our business to drive greater efficiency, including a full site-by-site analysis of our Kroger automated fulfilment network,” Sargent said on Thursday.
The news weighed heavily on Ocado’s stock, which has already lost 18% over the past year, raising questions over the trajectory of its US expansion.
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