UK economy flatlines to put pressure on Chancellor Jeremy Hunt ahead of Autumn Statement
THE British economy didn’t grow at all in the last three months and flatlined between July and September, official figures have shown.
Zero growth is the weakest figure in a year after the economy eked out a 0.2 per cent rise in the second quarter, the Office for National Statistics said yesterday.
The UK has been nicknamed a “stagnation nation” by the Resolution Foundation because it has faced a long period of slow or no growth.
James Smith, Resolution research director, said: “The UK economy has stagnated again in recent months, driven in part by the rapid rise in interest rates since late 2021.”
A slump in housing sales has dragged down the housing sector while businesses have cut back on shipping goods across the country, lowering transport sector output.
Chancellor Jeremy Hunt said yesterday that the Autumn Statement will focus on “how we get the economy growing” and said that “high inflation is the single greatest barrier to economic growth”.
Economists have said the flatlining figures dash the Government’s promise to get the economy growing and limit Mr Hunt’s ability to cut taxes in his package, which is due in under a fortnight.
Drinks drain
BEVERAGE brand Diageo suffered its biggest one-day share drop in two decades yesterday after warning of a sales slowdown.
The Guinness maker warned profits will be lower after a Latin American slump as customers curb spending.
New boss Debra Crew blamed “lower consumption than expected”.
Redrow’s dip
HOUSEBUILDER REDROW has lowered its profit forecasts for the rest of the year as its sales of new homes have slumped by a quarter.
The firm also warned property chains between buyers were breaking down.
Redrow thinks it will make closer to £180million profits, rather than its target of £200million.