Skyscrapers in the Canary Wharf monetary, company and shopping district in London, UK.
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The U.K. economy flatlined in the 3rd quarter, preliminary figures revealed Friday.
Gross domestic item revealed no quarterly development in the the 3 months to the end of September, following a boost of 0.2% the previous quarter. In yearly terms, Britain’s third-quarter GDP was 0.6% greater than in the very same duration in 2022.
Services sector output dropped 0.1% on the quarter, however the decrease was balanced out by a 0.1% boost in building and construction efficiency, while the production sector flatlined.
U.K. Chancellor of the Exchequer Jeremy Hunt stated high inflation stays the “single greatest barrier to economic growth” in the nation, with the customer rate index staying at 6.7% year-on-year in September.
“The best way to sustainably grow our economy right now is stick to our plan and knock inflation on its head,” Hunt stated.
“The Autumn Statement will focus on how we get the economy growing healthily again by unlocking investment, getting people back into work and reforming our public services so we can deliver the growth our country needs.”
Lindsay James, financial investment strategist at Quilter Investors, stated the Friday figures verified an inbound downturn that has actually been significantly signified by leading indications in current months, with customer costs and company activity revealing fractures that have actually likewise softened labor need.
“September’s data did positively surprise thanks to the U.K.’s strong services sector, but was not enough to offset July’s negative print and produce any growth in Q3 relative to the previous quarter. While somehow avoiding a recession this year, today’s no growth reading means the UK economy is flatlining with only 0.2% economic growth in the last six months.” she stated.
“Unfortunately, for many the economic pain has only been delayed. As the Bank of England stated earlier this month that more than half of the impact of higher interest rates on the level of GDP is still to come through, the U.K. economy faces growing headwinds as we approach 2024.”
