"UK GDP declined marginally by 0.1% in October, reflecting an economy that is stable but still unable to build meaningful forwards momentum. The UK is neither sliding into a clear downturn nor generating the lift needed to move into a firmer, sustainable expansion phase. Across the main sectors, October's picture is uneven. Manufacturing and construction continue to feel the weight of higher borrowing costs and muted global demand, while improvements in consumer-facing services remain hesitant despite easing inflation."
"The economy's performance in the final quarter will depend heavily on how households respond to improving real incomes and whether businesses decide conditions are stable enough to revive investment spending plans that were put on hold earlier in the year. Looking beyond the immediate period, the figures reinforce the challenges heading into 2026. A more constructive year is still possible - particularly if interest rates fall further and inflation continues to normalise -"
UK GDP declined marginally by 0.1% in October, indicating stability without meaningful forward momentum. The economy is neither in a clear downturn nor generating the lift for a firmer, sustainable expansion. Sector performance is uneven: manufacturing and construction feel higher borrowing costs and muted global demand, while consumer-facing services show hesitant improvements despite easing inflation. Final-quarter performance will hinge on household responses to improving real incomes and whether businesses deem conditions stable enough to restart investment plans shelved earlier in the year. Heading into 2026, stronger growth remains possible if interest rates fall and inflation normalises, but progress requires higher investment, better productivity, and long-term supportive policy.
Read at London Business News | Londonlovesbusiness.com
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