"UK GDP growth lost momentum in the second half of this year, growing only 0.1% on the quarter in Q3 2025. The slowdown was primarily driven by a contraction in the production sector and weak household demand, amplified by easing labour market conditions, and fiscal uncertainty weighing on confidence. Growth is expected to remain modest over the medium term, with a slight slowdown expected in 2026."
"UK CPI inflation stood at 3.6% in October and is set to decline throughout 2026 before returning to the 2% target at the start of 2027. Continued signs of labour market easing, alongside growth concerns, increase the likelihood that the Bank of England will cut the Bank Rate to 3.75% in December 2025. London, the Southeast, and the Northeast are set to drive growth in 2026, with the devolved nations lagging behind."
"The Eurozone showed subdued growth in Q3 2025. Despite a modest acceleration in the latest monthly inflation figures, headline inflation remains close to target and is forecast to fall over the coming year. The US outlook remains unclear due to a lack of available data increasing uncertainty. The Chancellor's package of fiscal changes announced in the Autumn Budget have enabled her to more than double fiscal headroom."
UK GDP growth slowed markedly in the second half of 2025, rising only 0.1% quarter-on-quarter in Q3 2025, driven by a contraction in production and weak household demand. Easing labour market conditions and fiscal uncertainty weighed on confidence. Growth is projected to remain modest over the medium term with a slight slowdown in 2026. CPI inflation was 3.6% in October and is forecast to decline through 2026, returning to 2% at the start of 2027, supporting the likelihood of a Bank Rate cut to 3.75% in December 2025. Regional and global prospects are mixed and fiscal choices pose long-term growth risks.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]