The UK’s economic growth witnessed a sharp slowdown in the third quarter of 2024, as latest figures reveal.
- GDP rose just 0.1% between June and September, a steep fall from previous quarters.
- Economists had expected a modest 0.2% growth, highlighting the underperformance.
- The manufacturing sector and information services saw notable declines, impacting overall GDP.
- Retail sales showed mixed results, with a notable increase in September but overall decline in non-food sales year-on-year.
The UK economy’s growth decelerated to a mere 0.1% increase in GDP from June to September 2024, a stark contrast from the 0.5% rise in the previous quarter and 0.7% growth at the beginning of the year. Economists had anticipated a higher growth rate of 0.2%, underscoring the unexpected economic stagnation.
September saw a decline in monthly GDP by 0.1%, driven by decreases in manufacturing output and information and communication services. This followed an unrevised growth of 0.2% in August and no growth in July.
The retail sector presented a mixed bag of results. While UK retail sales climbed by 2% in September and followed with a 0.6% increase in October, non-food items purchased in-store over three months to September fell by 1.5% compared to the same period last year, which showed a growth of 0.3%.
Helen Dickinson, CEO of the British Retail Consortium, noted the early autumn period saw shoppers boosting their wardrobes with seasonal apparel. However, despite this rush, she highlighted the challenges ahead, particularly as retailers approach the critical ‘Golden Quarter’. She remarked on the limited capacity for further investment amid weak consumer confidence and sustained high business rates.
The UK’s economic outlook remains cautious as it grapples with slow GDP growth and fluctuating retail performance.
