UK growth slower than expected in third quarter


ONS director of economic statistics Liz McKeown said that while there had been some growth in services and construction, they were weaker than in the previous quarter.

“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 and hair and beauty salons,” she said.

Ruth Gregory, deputy chief UK economist with Capital Economics, said that even without the drag on GDP growth by the Jaguar Land Rover cyber-attack, the economy is “is struggling to gain decent momentum”.

“With tax rises in the upcoming Budget likely to trim GDP by around 0.2% in 2026, there is little reason to think that GDP growth will accelerate much from here,” she said.

The weakness of the figures led some analysts to suggest there was now an increased chance of the Bank of England cutting interest rates when it meets next month.

Suren Thiru, economics director for the Institute of Chartered Accountants in England and Wales, said the figures may be enough “to push a majority of rate-setters to authorise another policy loosening”.


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