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The newest revised figures from the Workplace for National Statistics have revealed the UK financial system didn’t develop within the third quarter of this 12 months.
The statistics watchdog had beforehand mentioned the financial system grew 0.1 per cent within the third quarter. Nonetheless, based on the newest figures, the financial system flatlined, leaving the UK with no progress between July and September within the run-up to the Finances.
Because of this, the UK tied with Italy for the bottom progress within the G7 through the third quarter of 2024.
Progress within the second quarter of this 12 months was additionally revised right down to 0.4 per cent.
In September, the ONS mentioned GDP had grown by 0.5 per cent, which was minimize down from earlier estimates.
In the meantime, actual family disposable earnings per particular person was additionally estimated to not have grown over the last quarter, following a progress of 1.4 per cent within the earlier quarter.
“The problem we face to repair our financial system and correctly fund our public funds after 15 years of neglect is big,” mentioned Chancellor Rachel Reeves in response to the info.
“However that is solely fuelling our hearth to ship for working folks. The Finances and our plan for change will ship sustainable long-term progress, placing extra money in folks’s pockets by means of elevated funding and relentless reform.”
The information got here as the newest progress indicator survey from the Confederation of British Business predicted a pointy fall in enterprise exercise within the new 12 months.
Progress expectations fell to their weakest since November 2022, within the aftermath of Liz Truss’ Mini Finances.
Within the survey, the companies sector reported it was anticipating a decline in exercise, whereas producers forecast that output will fall sharply within the first three months of 2025.
Final week, the Financial institution of England additionally revised its progress forecasts for the final quarter of 2024, anticipating the UK financial system to not develop in any respect, in comparison with 0.3 per cent progress estimates made in November.
“The financial system was weaker within the second and third quarters of this 12 months than our preliminary estimates prompt, with bars and eating places, authorized corporations and promoting, specifically, performing much less nicely,” mentioned Liz McKeown, director of financial statistics for the ONS.
“The family saving ratio fell a bit of within the newest interval, although stays comparatively excessive by historic requirements. In the meantime, actual family disposable earnings per head confirmed no progress.”
