The UK’s economic slowdown gathered further momentum during the third quarter of the year with growth of just 0.1%, according to an early official estimate that makes for horrific reading for the chancellor.
The Office for National Statistics (ONS) reported a surprise contraction for output during September of -0.1%.
The figures for July-September followed on the back of a downwardly revised 0.2% growth performance over the previous three months and the 0.7% expansion achieved between January and March.
Money latest: The £110 benefit 1.1 million older Britons don’t claim
The encouraging start to 2025 was soon followed by the worst of Donald Trump’s trade war salvoes and the implementation of budget measures that placed employers on the hook for £25bn of extra taxes.
Each has been blamed by economists since for pushing up inflation and harming investment and employment.
ONS director of economic statistics, Liz McKeown, said: “Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period. There was also a further contraction in production.
“Across the quarter as a whole manufacturing drove the weakness in production. There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.
“Services were the main contributor to growth in the latest quarter, with business rental and leasing, live events and retail performing well, partially offset by falls in R&D [research and development] and hair and beauty salons.”
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