The 海角视频's economic growth in the third quarter was slower than anticipated, according to recent data. Business groups attribute this to the uncertainty leading up to last month's Budget.
The Office for National Statistics (ONS) reported a 0.1% growth in the economy for the third quarter, following a contraction of 0.1% in September. Economists had predicted an expansion of 0.2% for both the quarterly and monthly figures, as reported by .
These statistics confirm a significant slowdown in the economy compared to the first half of the year when the 海角视频 was one of the fastest-growing G7 economies. Liz McKeown, director of economic statistics at the ONS, commented: "The economy grew a little in the latest quarter overall as the recent slowdown in growth continued," adding that "Generally, growth was subdued across most industries".
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Suren Thiru, ICAEW economics director, stated that "the third quarter outturn paints a more realistic picture of the 海角视频's underlying growth trajectory given longstanding challenges over poor productivity and persistent supply side constraints,". The crucial services sector saw a growth of 0.1% in the quarter, while construction rose by 0.8%.
However, production, which includes the manufacturing sector, fell by 0.2%, impacting the overall performance. Chancellor Rachel Reeves expressed her dissatisfaction with the figures, promising to stimulate growth through "investment and reform."
Business groups have intimated that the prevalent speculation preceding last month's Budget may have contributed to the economy's downturn in September.
Ben Jones, lead economist at the Confederation for British Industry (CBI), pointed out that the uncertainty in advance of the Budget "probably played a big part" in the economic slowdown.
In agreement, David Bharier, head of research at the British Chambers of Commerce (BCC), noted that business confidence had waned due to "a spike in anxiety over tax and employment policy".
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Moreover, businesses have expressed concerns that the measures actually unveiled in last month's Budget could hinder rather than facilitate growth.
Rachel Reeves announced that taxes would increase by approximately £40 billion, with employers national insurance witnessing the most significant raise.
Retail and hospitality industries, in particular, have cautioned that the heightened tax burden may force them to reduce their workforce or relay the increased costs to customers.
"The Budget has set off warning lights for business. The hike in National Insurance Contributions alongside other increases to employers' cost base will add to the burden on business," stated Jones.
Sanjay Raja, chief 海角视频 economist at Deutsche Bank, warned that the road ahead looks "bumpy", hinting that Budget measures could "start to impact business sentiment" as the year progresses into its final quarter.
Official forecasters appear to have a tempered view on the Budget's impact on growth, given that a rise in public sector activity is anticipated to balance any downturn in the private sector.
With an increase in taxes on the table, the Chancellor has also declared substantial enhancements in public investment and escalated spending on everyday public services.
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The Office for Budget Responsibility (OBR) surmises that the Budget may provide a "temporarily boost" to output in the short term, but expects GDP to remain "largely unchanged" over a five-year period.
It projects the 海角视频's growth at 1.1 percent for this year, with an uptick to 2.0 percent next year, and a slight reduction to 1.5 percent by 2027.
Echoing this perspective, the Bank of England's latest predictions share a similar trajectory for economic growth. The Bank is forecasting a 1.75 percent growth for the 海角视频 next year, followed by a decrease to 1.1 percent in 2026.