The UK economy saw no growth in the third quarter as Chancellor Rachel Reeves’ controversial October Budget continues to come under fire.
The Office for National Statistics (ONS) outlined that growth was revised down from an initial estimate of 0.1% growth to zero percent.
Liz McKeown, Director of Economic Statistics at the ONS, said: “The economy was weaker in the second and third quarters of this year than our initial estimates suggested with bars and restaurants, legal firms and advertising, in particular, performing less well.
“The household saving ratio fell a little in the latest period, though remains relatively high by historic standards. Meanwhile real household disposable income per head showed no growth.”
The ONS found there was no growth in the services sector in the latest quarter while a 0.7% increase in construction was offset by a 0.4% fall in production.
Early estimates show real GDP per head fell by 0.2% in the third quarter of 2024 and is 0.2% lower compared with the same quarter a year ago, according to the ONS.
The ONS also revised down its growth reading for the second quarter of 2024, to 0.4%. In September, it estimated that GDP had increased by 0.5%, which was itself a reduction on previous estimates.
The downbeat economic readings will serve as yet another blow to Chancellor Rachel Reeves and the Labour Government’s hopes to grow the economy rapidly. A survey from the Confederation of British Industry has already found firms expect to reduce both output and hiring in 2025.
Ms Reeves said: “The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge. But this is only fuelling our fire to deliver for working people.
“The Budget and our Plan for Change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform.”
The Bank of England last week raised concerns over persistent inflation and a stagnating economy. Threadneedle Street warned on Thursday (December 19) that it expects zero GDP growth between October and December.
