Commenting on today’s latest GDP figures, Kevin Brown, savings specialist at Scottish Friendly, said:

"While there’s no shortage of people ready to talk down the UK economy – and it certainly has its challenges – it continues to show a degree of resilience.

"Growth in July was flat, which is clearly disappointing after the stronger-than-expected performance we saw in Q2, but it doesn’t fundamentally alter the fact that the economy has been holding up relatively well in the face of heightened geopolitical uncertainty, a softening labour market and stubborn inflation.

"Both businesses and households are clearly still grappling with tighter monetary policy, rising prices and higher taxes, but the economy is displaying signs of stability rather than deterioration.

"What’s encouraging is that forward-looking indicators suggest some improvement ahead. PMI data for August reported the strongest month of activity in a year, thanks to a rebound in the UK’s dominant services sector. That points to renewed momentum as we head into the autumn.

"In terms of interest rates, flat growth does little to change the outlook. The Monetary Policy Committee remains squarely focused on quashing inflation, meaning a further reduction in borrowing costs looks unlikely unless the economy starts to deteriorate sharply. While good news for savers, it does not mean cash has reclaimed its crown. Not by a long stretch. Cash was dethroned the moment inflation took hold.

"So, if you are looking to grow your money in this inflationary environment, you would be advised to ensure you are getting the best rates available or you might want to consider options for investing.

"In the absence of growth-boosting rate cuts, investors and businesses will instead be looking to the Autumn Budget for measures that can support growth and bolster confidence. However, given the reported £40bn hole in public finances, it would be a stretch to expect many – or indeed any – giveaways in the upcoming fiscal review."