UK economic growth stalls in third quarter
By Abigail Townsend
Date: Friday 15 Nov 2024
(Sharecast News) - The UK economy grew by 0.1% in the last quarter, official data showed on Friday, slightly below expectations.
The Office for National Statistics said growth in the three months to September had been led by strength in the retail trade, excluding motor vehicles, and new construction work.
Output in the construction sector jumped 0.8%.
The 0.1% uptick was, however, below second-quarter growth of 0.2%. It also missed analyst expectations for a 0.2% improvement.
In September, GDP fell 0.1%. The ONS said a "notable" increase in car sales had been offset by a "slow month for IT companies". Also weighing on growth was the manufacturing sector, with production output down 0.5% .
The services sector, one of the main drivers of economic growth in the UK, was flat.
Liz McKeown, director of economic statistics at the ONS, said: "The economy grew a little in the latest quarter overall, as the recent slowdown in growth continued.
"Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter."
Ben Jones, lead economist at the CBI, said: "The UK economy stalled over the third quarter. Uncertainty ahead of the Budget probably played a big part, with firms reporting a slowdown in decision making.
"Hopefully this will prove to be a blip; we still expect the economy to return to a path of modes growth in the year ahead. But downside risks to the outlook have increased."
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