UK economy shows no growth in third quarter
Britain’s economy showed no growth in the third quarter, raising the prospect of a slide into recession.
Gross domestic product (GDP) came in at 0% over the three months to September, according to the Office for National Statistics. The consensus among economists had been that the economy would shrink by 0.1%.
A fall in services, health, management consultancy and commercial property rentals were partially offset by growth in engineering, car sales and machinery leasing.
Jeremy Batstone-Carr, European Strategist, Raymond James Investment Services, said: “The data shows that fragility has permeated across economic sectors.
“Nonetheless, there is a glimmer of encouragement in today’s trade data. Export volumes rose more than import activity, supported by the sterling’s resilience against trading counterparts.”
Ben Jones, CBI lead economist, said: “It’s clear that higher interest rates are starting to bite, and demand has become less resilient.
“Unlocking business investment across the economy by making full expensing permanent could – according to CBI analysis – lead to a 2% increase to GDP by the end of the decade.”
Chancellor Jeremy Hunt said: “High inflation is the single greatest barrier to economic growth. The best way to sustainably grow our economy right now is stick to our plan and knock inflation on its head.
“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.”