Revised figures from the Office for National Statistics (ONS) have shown that the º£½ÇÊÓƵ economy experienced no growth in the third quarter of this year, contradicting earlier reports of a 0.1 per cent increase. This stagnation means the º£½ÇÊÓƵ matched Italy for the lowest growth among G7 nations during that period.
Additionally, growth for the second quarter was downgraded to 0.4 per cent from an initial estimate of 0.5 per cent. Real household disposable income per person also remained static after a 1.4 per cent rise in the preceding quarter, as reported by .
Chancellor Rachel Reeves commented on the situation, "The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge," adding, "But this is only fuelling our fire to deliver for working people. The Budget and our plan for change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform."
These revelations come as the Confederation of British Industry's latest growth indicator survey forecasts a significant decline in business activity heading into the new year.
Businesses' growth expectations have slumped to their lowest level since November 2022. A survey found that the services sector anticipates a decline in activity, while manufacturers predict a sharp drop in output in the first quarter of 2025.
In a separate forecast, the Bank of England downgraded its growth expectations for the final quarter of 2024, now anticipating no growth at all, down from the 0.3% growth estimated in November. ONS director of economic statistics, Liz McKeown, stated: "The economy was weaker in the second and third quarters of this year than our initial estimates suggested, with bars and restaurants, legal firms and advertising, in particular, performing less well," and "The household saving ratio fell a little in the latest period, though remains relatively high by historic standards. Meanwhile, real household disposable income per head showed no growth."
