(CTN News) – As a result of the Brexit vote, the U.K. economy’s output stagnated in the third quarter, according to preliminary data released on Friday.
In comparison with the previous quarter, gross domestic product did not show any growth in the three months to the end of September, following an increase of 0.2% in the previous quarter. In terms of annual growth, Britain’s third-quarter GDP was 0.6% higher than it was in the same period last year.
As a result of the decline in the output of the services sector, the performance of the construction sector was up 0.1% in the quarter, making up for the decline in the output of the production sector.
According to Jeremy Hunt, the Chancellor of the Exchequer of the United Kingdom, high inflation remains the single greatest barrier to economic growth in the country, with the consumer price index remaining at 6.7% year-on-year in September, a record low.
Hunt said that the best way to sustainably grow our economy right now is to stick to our plan and knock inflation on the head.
The Autumn Statement will focus on how we can get the economy growing again by unlocking investment, getting people back into work, and reforming our public services so that we can deliver the growth that our country needs.
According to Quilter Investors’ investment strategist Lindsay James, the Friday figures confirm the upcoming slowdown that has been increasingly predicted by leading indicators in recent months, with consumer spending and business activity showing signs of weakness, as well as a softening of labor demand.
As a result of the UK’s Economy’s strong services sector, September’s data did surprise in a positive way, although it wasn’t enough to offset July’s negative print and cause any growth in Q3 compared to the previous quarter.
The UK economy, despite somehow avoiding a recession this year, is flatlining with only 0.2% economic growth in the last six months in the UK Economy, according to today’s no growth reading.
I regret to inform you that the economic pain has only been delayed for many people. According to the Bank of England, which reported earlier this month that over half of the impact of higher interest rates on the level of GDP has yet to be realized, the U.K. appears to be facing growing headwinds as we approach the year 2024.”