Revised figures from the Office for National Statistics (ONS) show the UK economy experienced zero growth between July and September 2024. The initial estimate of 0.1% growth has been downgraded, highlighting stagnation in economic activity. Additionally, growth for the second quarter (April to June) was revised down from 0.5% to 0.4%, reflecting weaker-than-expected performance in sectors like hospitality, legal services, and advertising.
Chancellor Rachel Reeves acknowledged the significant challenges, emphasizing the need for long-term sustainable growth through the upcoming October Budget. However, the Confederation of British Industry (CBI) warned of a “worst of all worlds” scenario, with businesses anticipating reduced output, hiring freezes, and price hikes due to tax increases in the Budget.
The revised figures underline the fragility of the UK economy amid ongoing challenges, with both policymakers and businesses grappling with a difficult economic landscape.n