Flatlining GDP highlights economy’s precarious state - Chamber

The UK economy’s failure to grow between July to September compared to the previous three months highlights its precarious state, business leaders said today.

New data from the Office for National Statistics shows that gross domestic product (GDP) - which measures the value of goods and services produced - failed to grow at all in the third quarter.

However, it does mean the UK dodges a recession this year which is defined as two consecutive quarters of negative GDP.

Many economists had expected the economy to shrink over the period, by around 0.1 per cent.

But a stronger September – a rise of 0.2 per cent for the month thanks to a boost from the film production, health and education industries - meant the economy showed zero growth in the quarter.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “This morning’s GDP results highlight the precarious state of the economy as we approach the end of the year.

“It’s clear that higher interest rates coupled with persistently high levels of inflation have knocked consumer spending with Christmas just around the corner.

“Data from our latest Quarterly Business Report underlines the price pressures that many firms are facing and many will have been left feeling underwhelmed by this week’s King’s Speech.

“Within this context, there’s little room for error as the Chancellor prepares to release his latest Autumn Statement in the coming weeks – tackling business rates, improving the planning system and pressing ahead with net zero reform will all need to figure highly if we are to restore business confidence and drive investment.”

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