UK economic growth is expected to have slowed in July as consumers redirected their spending from retail stores to pubs, according to economists. The Office for National Statistics (ONS) is set to release its latest data, with most experts predicting no growth in gross domestic product (GDP) for the month. This would mark the beginning of Andy Burnham’s leadership as Prime Minister, who took office in July. Earlier, Chancellor John Healey had expressed optimism about the UK economy, suggesting it was "turning a corner." In June, the UK economy saw a 0.3% increase in GDP, largely driven by the hospitality and leisure sectors, which benefited from the excitement surrounding the World Cup and extended periods of hot weather. This performance contributed to a 0.4% GDP growth during the second quarter of the year. However, economists believe that July saw a slowdown in overall economic activity, with other sectors failing to keep up with the momentum from June. The continued World Cup excitement and warm weather may have provided a temporary boost to hospitality, but other parts of the economy lagged behind. Retail and wholesale activity is expected to have declined by 0.3% in July, according to forecasts. Elliott Jordan-Doak, an analyst at Pantheon Macroeconomics, suggested that any decline in spending was more likely due to consumers choosing to spend on drinks and meals at pubs rather than in shops. This shift may indicate that households are reprioritizing their spending rather than reducing it overall, even as they face rising energy and fuel costs. Analysts from Investec noted that after a strong first half of the year, during which the UK economy outperformed the rest of the G7 by growing 1%, the third quarter is expected to start with weaker performance. They pointed to soft retail sales in July as an early sign of this slowdown. The recent 13% increase in the energy price cap, which raised household utility bills, is also expected to have a dampening effect on consumer spending. Economists from Deutsche Bank warned that the economy may "slow from its current torrid pace of growth," as the impact of the Middle East crisis on real incomes has yet to fully appear in the data. They also noted that one-time boosts to the economy may fade, and budget uncertainty could discourage both households and businesses from spending.