UK growth revised down to zero; firms warn economy is heading for ‘worst of all worlds’ – business live | Business

Digging into today’s GDP report, we can see that the services sector stagnated in July-September.

Facing the business services sector flatlined, with consumer facing services increasing 0.1%

The biggest positive contributor to growth “is the safe trade and the seller”; repair of motor vehicles and motorcycles”, while the biggest negative contributor to growth was “financial and insurance activities”.

The production The sector declined by 0.4%, led by a 2.0% decline in the supply of electricity, gas, steam and air conditioning, while the manufacturing sector contracted by 0.1%.

Construction output is estimated to have grown by 0.7%; new work increased by 1.6%, while repair and maintenance decreased by 0.5%.

Chancellor Rachel Reeves has warned the government of a “massive” challenge to fix the UK economy.

According to this morning’s news, the economy could not grow in July-September, the Governor says:

“We are facing a challenge to fix our economy and properly organize our public finances after 15 years of massive neglect.

“But this is our only fire to save people to work.

“Busta and our plan of change will support long-term growth, put more money into people’s pockets through increased investment and relentless reform.”

The downward revision to UK Q3 GDP from +0.1% q/q to 0.0% appears to be mainly due to external influence rather than the domestic economy, reports Paul Dales of Capital. Economicswho says:

This leaves room for a lively debate with the family during the festive season about whether or not the economy is heading into recession.

Capital Economics also estimates that the UK economy also stagnated in the fourth quarter of this year.

The Dales adds:

Overall, these data suggest that, after a flat first half of the year, the country’s economy will stagnate in the second half of the year, due to a combination of prolonged drag from higher interest rates, weaker overseas demand and some concerns about business conditions. in kindergarten

Our prediction is that 2025 will be a better year for the economy than 2024. But the latest economic data suggest it doesn’t matter much how the year comes to an end.

The Conservatives warned that Britain could face “recession made in Downing Street” last year, making the front page of two right-leaning newspapers.

The Daily Mail says the CBI survey of 899 people has painted a grim picture of the country’s economic future.

While the times leading to the admission of Lucia Powellthe leader of the Commons, the state of the British yarn economy “deceives”.

Powell He said that he understood the vanity of the public, who had hitherto argued with the labor of the work;

“I knew we were [governing] it would be difficult to go “

“I think the voters and the state knew that it would be too difficult, so they thought we should change because we knew the country was bad in such a situation.

“I cannot understand the vanity of the people. It is vanity that I share, because we want to make things better, faster for people.

This morning climb to UK growth in the July-September period comes as business groups warn that action is set at the start of the new year.

The Confederation of British Industry is warning this morning that the UK economy is the worst economy in the world, with the economy set for a “precipitous” decline in the next quarter.

And Chancellor of the Exchequer Rachel Reeves has been criticized for driving growth expectations down to the lowest level for two years.

The latest growth indicator CBI survey found that private sector firms expect to cut hiring, reduce output and raise prices in the first three months of 2015.

Alpesh Paleja group in the meantime, the financial deputy of the capital, says:

“There is little celebratory cheer in our latest data, which suggests that the world economy is headed for the worst ever – even though expectations for both output and employment will reduce, and price growth expectations are firmer.

Businesses continue to cite the impact of the measures announced in the Budget – particularly the rise in employer NICs – to exacerbate an already tepid demand environment.

Tory business speaker Andrew Griffith if the UK falls into recession, he declared, “a fact in Downing Street”.

Responding to CBI surveys; Griffith says:

“In taking office, the chancellor is positioning this country as hostile to aspiration, investment and growth.”

The Conservative MP added: “Rachel the Speaker’s tax spree and rubbish talking about the economic heritage are literally killing businesses and businesses.

“If there is a recession – and from these CBI expectations, that looks increasingly likely – they will be held in Downing Street. Labor needs to urgently change course before the damage they do becomes even greater.”

He defended the Treasury in October, saying the government needs business stability.

A Treasury spokesman says:

“More than half of employers will see either a cut or no change in their National Insurance bills.

“The thought of the corporation capped the G7 in the lowest rate, if 40% business rates relief next year for 250,000 properties where there were no plans to do it, they launched a 10-year infrastructure plan and created a mega pension fund to pay for investment in British businesses, infrastructure and energy-based. This in addition to the creation of a National Fund to catalyze over £70bn in investment to drive growth in our own to invest in British business to pay off.

But… there is also sadness in the shopping district, with the British Fashion Consortium predicting that January spending is on the horizon.

According to BRC’s latest Consumer Sentiment Monitor the expectation that the state economy will collapse in the next three months;

Helen Dickinson executive director British Mode Consortium says:

“Public confidence in the state of the economy has taken a nosedive…

This caused a widening gap between the expectations of the economy and their own money, which remained unchanged. Perceptions declined most strongly by age, with 18- to 35-year-olds scoring significantly more than older age groups on both questions.

Public spending intentions in both retail and retail fell by 6pts, with consumer expectations falling in almost all retail categories. If these expectations are true, retailers could find themselves facing a New Year’s spending spree as they reveal January sales.

Hello and welcome to our rolling coverage of business, financial markets and the world economy.

Britain’s economy stagnated in the first three months of the new Labor Government, and was even weaker than expected in the last part of the Conservatives’ tenure, new data showed this morning.

The Office for National Statistics has just revised its GDP growth estimate for the third quarter of this year to 0%, down from 0.1% previously expected. That shows the UK economy flattened in July-September.

The latest quarterly national GDP reports, just released, also show that real GDP per capita fell by 0.2% in Quarter 3 of 2024, and was 0.2% lower compared to the same quarter a year ago.

On an output basis, the ONS says there was no growth in the services sector in the last quarter, while a 0.7% increase in construction was offset by a 0.4% increase in production.

ONS director of economic statistics Liz McKeown explains;

“The economy in the 2nd and 3rd quarters of this year was weaker than our initial estimates with bars and restaurants, legal firms and advertising performing less well in particular.

“The household saving ratio has fallen somewhat in the last period, although it remains relatively high from historical standards. Meanwhile, household income per capita showed no growth.

The ONS also revised its estimate for growth in April-June to 0.4%, from 0.5% in growth previously estimated.

We are more interested in the state of the economy during the day, as in the windy city at Christmas;

goals

• 7am GMT: UK GDP quarterly national accounts, UK: July to September 2024

• 1.30pm GMT: Chicago H Index National Action

• 3pm GMT: CB report on US consumer confidence