The UK economic system grew by simply 0.1% within the third quarter of this 12 months, weaker than the 0.2% development in GDP for the earlier three months, new official figures reveal.
The 0.2% determine, for April to June, was itself revised down by the Office for National Statistics (ONS), from its earlier estimate for the interval of 0.3 per cent.
The cyberattack on Jaguar Land Rover, which halted production for weeks, seems to have performed an element within the July to September slowdown.
“At the moment’s up to date figures paint the identical image as our preliminary estimate, with development persevering with to gradual within the third quarter,” stated Liz McKeown, ONS director of financial statistics.
“Progress in companies had been partially offset by falls in manufacturing, with a marked drop in automotive manufacturing.”
In an indicator of the strain on folks’s funds, Britons additionally saved much less between July and September.
The family saving ratio fell 0.7 proportion factors to 9.5% – the bottom in a 12 months; and there was additionally an 0.8% dip in family disposable revenue per head, following no change within the earlier quarter.
The Financial institution of England trimmed interest rates to 3.75% last week in a bid to assist increase the economic system.
It stated it anticipated zero GDP development within the present October-to-December interval however that the underlying tempo of financial development was round 0.2% per quarter.
GDP is a crucial indicator for the economic system because it measures the whole worth of all items made and companies supplied. Rising GDP means the economic system is rising.
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Britain had had the perfect development figures among the many Group of Seven massive superior economies within the first half of this 12 months, alongside Japan.
Nonetheless, the expansion has slowed considerably since then. Critics have put this down partly to long-running uncertainty about tax will increase within the run as much as the chancellor’s funds final month.
The ONS revised its 2024 fourth-quarter estimate up 0.1 proportion factors to 0.3%.
Revisions are sometimes made when extra detailed info and information change into accessible.
The ONS stated GDP within the third quarter (July to September) was estimated to be 1.3% increased than the identical interval final 12 months. In the meantime, GDP for 2024 as a complete elevated by 1.1%.
