- GDP showed no growth in the three quarters to the end of September, after a 0.2% increase in the previous quarter.
- British Chancellor of the Exchequer Jeremy Hunt said high inflation remains the country’s “biggest impediment to economic growth.”
Skyscrapers in the Canary Wharf financial, commercial and shopping district in London, United Kingdom.
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Preliminary figures on Friday showed that the British economy stabilized in the third quarter.
GDP showed no quarterly growth in the three months to the end of September, after a 0.2% increase in the previous quarter. In annual terms, Britain’s GDP in the third quarter was 0.6% higher than in the same period in 2022.
Service sector production decreased by 0.1% on a quarterly basis, but this decline was offset by a 0.1% increase in construction performance, while the production sector remained unchanged.
British Chancellor of the Exchequer Jeremy Hunt said high inflation remains the country’s “biggest impediment to economic growth”, with the consumer price index remaining at 6.7% year-on-year in September.
“The best way to grow our economy sustainably right now is to stick to our plan and hit inflation on its head,” Hunt said.
“The Autumn Statement will focus on how to get the economy growing healthy again by unlocking investment, getting people back to work and reforming our public services so we can deliver the growth our country needs.”
Lindsay James, investment strategist at Quilter Investors, said Friday’s numbers underscored the coming slowdown that leading indicators have increasingly pointed to in recent months, as consumer spending and business activity showed cracks that also dented demand for labor.
“September data surprised positively thanks to the UK’s strong services sector, but it was not enough to offset July’s negative print and deliver any growth in the third quarter compared to the previous quarter. While a recession is somehow avoided this year, today’s no-growth reading means that The UK economy is stable with economic growth of just 0.2% in the past six months, she said.
“Unfortunately, for many, the economic pain is only delayed. And with the Bank of England reporting earlier this month that more than half of the impact of interest rate hikes on the GDP level has yet to occur, the UK economy faces growing headwinds. We “We are approaching 2024.”
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