US inflation cools to 2.5%, its lowest since February 2021 – as it happened

UK government's 500m taxpayer-backed deal for steelworks secures long-term future of Port Talbot but unable to secure guarantees to save 2,500 jobs

• US price growth in August softens as Fed prepares to cut interest rates

The July GDP print was disappointing: despite the modest boost from the Euros, the UK saw broad-based weakness across the economy," said Sanjay Raja, chief UK economist at Deutsche Bank.

Growth is normalising from the rapid pace set in the first half of 2024 - this much should be expected. The pace of the slowdown, however, is a little faster than we anticipated - especially in light of the still stellar survey data we've seen over summer.

The economy stagnated in July, but that doesn't mean the UK is on the cusp of another recession and we still think the stickiness of inflation will keep the Bank on hold in September.

We still think a mild slowdown in GDP growth to more normal rates of 0.3% quarter-on-quarter later this year is more likely than a sudden drop back into recession.