The UK economy grew by just 0.1% in the third quarter, indicating reduced momentum, as both services and manufacturing output slowed due to high interest rates and budget uncertainties.
Despite expectations of 0.2% quarter-on-quarter growth, the real figures reveal that the economy is struggling, highlighted by a month-on-month GDP shrinkage of 0.1% in September.
Recent surveys are increasingly alarming with labor market weakness and declining consumer and business confidence, particularly as everyone looks forward to the upcoming budget scheduled for October 30.
The Bank of England's recent interest rate cuts to 4.75% reflect attempts to stimulate growth, but borrowing costs are still significantly higher than pre-pandemic levels, affecting the economy.
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