UK growth slowdown sparks recession fears ahead of Budget - London Business News | Londonlovesbusiness.com
Briefly

UK growth slowdown sparks recession fears ahead of Budget - London Business News | Londonlovesbusiness.com
"A depressing 0.1% growth rate tells investors the economy is moving with barely any forward motion. When expansion slips to this level, confidence weakens, investment decisions slow and earnings pressure increases across the board."
"The rise in unemployment adds another layer of concern. A shift from 4.8% to 5% may sound small, but direction always matters more than magnitude at this stage of the cycle. Once households experience income strain, the slowdown feeds through spending, borrowing and business expectations."
"Recession fears are rising because the signals are lining up at the same time. Weak output, higher unemployment and looming tax increases form a combination that investors cannot ignore. People are now asking whether the UK has enough underlying strength to withstand another policy squeeze."
The UK economy expanded by just 0.1% in the third quarter while unemployment rose to 5%, the highest in four years. Such minimal growth undermines confidence, slows investment decisions and intensifies earnings pressure across sectors. The rise in unemployment from 4.8% to 5% signals mounting household income strain that can reduce spending, borrowing and business expectations. Weak output, higher joblessness and impending tax increases collectively heighten recession risks. A sharp fall in car and trailer production, down more than a quarter after a cyberattack halted Jaguar Land Rover output, materially contributed to September's contraction and exposed supply-chain vulnerabilities.
[
|
]