UK economy stagnates in third quarter amid new setbacks

The UK economy stalled in the third quarter, according to revised official data published on Monday, dealing a new blow to the Labor government.

ET Year-End Special Reads

The Office for National Statistics (ONS) said in a statement that gross domestic product (GDP) grew by 0.1% from July to September, a downward revision from its initial estimate.

The data covers the Labor government’s first few months in office ahead of its highly anticipated first budget at the end of October.

Commenting on the figures released on Monday, Treasury Secretary Rachel Reeves said: “The challenge we face in fixing the economy and adequately funding public finances after 15 years of neglect is enormous.”

“But this only fuels our commitment to workers,” she added.

The revised figure lags well behind economic projections of 0.2% growth, and analysts say the economic slowdown is slowing in part due to uncertainty about the budget, which includes plans to increase business taxes and increase state borrowing. The ONS also downgraded its second quarter growth figure to 0.4%. From 0.5% to 0.5%. Paul Dales, chief UK economist at research group Capital Economics, said of budget policy:

ET Year-End Special Reads

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