UK economy flatlines over summer with GDP unchanged in the last quarter
Britain’s economy achieved no growth between July to September compared to the previous three months, according to the latest official figures published this morning.
Economists had been expecting the UK’s economy to contract over the period, by about 0.1%.
Instead, a stronger than forecast September meant the economy showed zero growth, according to the Office for National Statistics. (ONS)
Last week, the Bank of England said the UK economy was likely to see zero growth until 2025, although it is expected to avoid a recession.
The ONS said the latest growth figures indicated a subdued picture across all sectors. It notes the services sector experienced a small decline over the three-month period, while the manufacturing sector saw slight growth.
Last week, the Bank of England forecast Britain’s economy was likely to show zero growth until 2025, although it is expected to steer clear of recession.
George Lagarias, chief economist at Mazars, said: “Economic activity in the UK surprised on the upside. A deeper look at the numbers tells as much a story of economic resilience, as one of economic stress.
“While headline GDP rose 0.2%, this was mainly driven by two factors: professional and healthcare services. On the one hand, companies increasingly find themselves in need of professional advice to navigate this difficult environment. This may lift up GDP for now, but it can’t be a sustainable driver of the economy.
“On the other hand, consumer-facing services continued to contract in line with the retail data we saw last month. The data is, to say the least, unidirectional. Persistent weakness in consumption suggests that this economic rebound may be temporary. The question we are faced with is: are consumers holding back for better deals, or because of high heating bills? With Black Friday, Cyber Monday and the festive season ahead of us, we will soon know.
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