UK Economy Slumps; Business Leaders Warn Of "Worst Of All Worlds"

Revised figures reveal that the UK economy showed zero growth between July and September as both the services and production sectors experienced declines, Indrabati Lahiri reported for Euronews.

Concerns about a potential recession in the UK are mounting, exacerbated by recent policy changes implemented by the new Labour government.

The Office for National Statistics reported that the UK’s GDP growth rate for the third quarter was stagnant at 0%, down from 0.4% in the previous quarter and below analyst expectations of 0.1%.

A slowdown in the services sector, particularly in the insurance and financial industries, was the primary factor behind the lack of growth.

Meanwhile, the production sector contracted by 0.4%, driven by decreases in gas, electricity, air conditioning, and steam supply.

Concerns about a potential recession in the UK are mounting, exacerbated by recent policy changes implemented by the new Labour government, which came into power in July 2024.

Measures introduced in the Autumn Budget, such as higher employer national insurance contributions (NICs), have prompted businesses to reconsider their budgets in the new year.