The segment of the UK economy which includes distribution, hotels and restaurants grew by 3.5% in July compared to the same month in 2016, and by 3.1% in Q2 2017 on the previous quarter, ONS data shows.
However this segment experienced no growth between July 2017 to June 2017, and a modest 0.7% when compared to Q1 2017.
The service sector was the only area of the economy that experienced growth in Q2, with the overall economy slowing to 1.5% according to the final reading of GDP by the Office for National Statistics, its slowest rate since 2013.
The second estimate of GDP growth, released in August, showed that the UK economy expanded at 1.7%.
GDP rose by 1.8% in the first three months of the year while quarterly growth is unrevised at 0.3%.
Commenting on the revised GDP data for the April-to-June quarter, ONS statistician Darren Morgan, says: “There was a notable slowdown in growth in the first half of 2017. The often buoyant services sector was the only area to grow in the second quarter.”
However, recent data shows that the services sector - which includes financial services and hospitality - recorded a 0.2% fall in July compared to 0.3% expansion in June.
Meanwhile Bank of England Governor Mark Carney that Britain’s economy was on track for the central bank to start raising record-low interest rates in the “relatively near term.”
He said: “What we have said, that if the economy continues on the track that it’s been on, and all indications are that it is, in the relatively near term we can expect that interest rates would increase somewhat.”