The UK economy recorded a growth of 0.1% in the third quarter of this year, a figure below analysts’ expectations of 0.2%. The data, released by the Office for National Statistics (ONS), indicates that the service sector was the primary contributor to this growth. However, the production sector experienced a contraction, notably affected by a decline in manufacturing activities.
In September, the economy contracted by 0.1%, attributed in part to a significant drop in car production linked to a cyber attack on Jaguar Land Rover (JLR). These growth figures precede the upcoming Budget announcement where Chancellor Rachel Reeves is anticipated to consider tax increases to align with her self-imposed borrowing guidelines.
Despite the overall modest growth, Rachel Reeves highlighted that the UK had the fastest-growing economy in the G7 during the first half of the year. She emphasized a commitment to continued economic improvements, particularly in addressing healthcare waiting lists, national debt, and the cost of living in her forthcoming Budget.
According to ONS director of economic statistics Liz McKeown, there were some gains in the services and construction sectors, although these were weaker than in previous quarters. Services, which included business rental and leasing, live events, and retail, were significant contributors to the growth, although these gains were somewhat diminished by declines in research and development and personal services like hair and beauty salons.
The data reveals a complex economic landscape, raising questions about the future trajectory of the UK economy as it navigates these challenges.
Source: https://www.bbc.com/news/articles/cx2y1z4z70jo?at_medium=RSS&at_campaign=rss