Britain's economy unexpectedly slowed to a crawl in July as the Delta variant of COVID-19 spread rapidly after lockdown restrictions were eased and as a “pingdemic'” kept many workers at home self-isolating. Economic output rose just 0.1% in July, the smallest monthly increase since January when Britain went into a new national lockdown. Economists had expected month-on-month growth of 0.6% in gross domestic product. The dominant services sector was flat in July from June, with output in consumer-facing services falling for the first time since January, driven mostly by a drop in the retail industry. Industrial output grew by 1.2%, boosted by the return to production of an oil field, but manufacturing was flat. Construction output fell by a monthly 1.6%. Businesses continued to struggle in August with staff shortages and supply chain problems - and it remains to be seen how this week's announcement of tax hikes for workers and employers to fund health and social care will affect the economy. But the slowdown in growth may bolster the case of Bank of England officials who think it is premature to talk about withdrawing stimulus, despite growing inflation pressure.