UK GDP: Unexpected slowdown in growth
Isaac Stell, investment manager at Wealth Club said: “The UK economy looks to have lost some momentum during the third quarter of 2024, with a slowdown in growth from 0.5% in Q2 to 0.1% for Q3. Whilst month-on-month GDP fell by 0.1% in September. The latest figures are likely to open the door to further rate cuts by the BoE before the year end.
Services output increased by 0.1% vs 0.6% in the previous quarter with only 8 of the 14 sub-sectors showing growth during the same period, while production experienced back-to-back quarters of negative growth falling by 0.2% in Q3, led by declines in electricity, gas, steam and air conditioning supply.
The latest quarterly figures will not help to quell further negativity around the government’s latest Budget following the increase in taxes on businesses which will potentially slow growth even further. With the governments’ growth agenda looking increasingly at risk, it may be down to the BoE to save the day by cutting rates at their December meeting, helping to ease the burden on businesses and consumers alike and deliver some much needed festive cheer.”
