The Office for National Statistics is due to release GDP figures for July at 7am, showing whether the UK economy grew during the summer heatwave. Economists expect flat growth for the month, which would slow the three-monthly growth rate to 0.3%, down from 0.4% in the April-to-June period, underscoring the economic pressures facing Chancellor John Healey.

The forecast comes as government bonds suffered a fresh sell-off, pushing the yield on 10-year UK gilts above 5.37%, the highest borrowing cost since 2007. A weak GDP reading could deepen market unease, with attention later turning to the University of Michigan's US consumer confidence report at 3pm BST.