When the Economy Takes a Sneeze
Between July and September, the UK’s growth didn’t pace around the clock – it dipped to a slow 0.1% after a brisk 0.5% in the first half of the year. For the Chancellor, that’s like finding out your favourite coffee shop switched to decaf on the last day of the week.
Rachel Reeves: “The Numbers are a Bad Fit”
- “Higher growth is the culinary secret recipe I’ve been cooking up.”
- “I’m not impressed with the latest data – they’re more ‘meh’ than ‘marvelous.’”
- “My Budget danced over tough choices to tighten the budget cake, and now I’m pivoting to invest and reform.”
- “Goal: More jobs, more pockets of cash, a thriving NHS, a rebuild of Britain, and tighter borders in a decade of renewal.”
Liz McKeown: The ONS Chair
“Growth’s got a bit of a dip in the latest quarter.”
- Retail and new construction did a respectable hustle.
- Telecommunications and wholesale took a nap, pulling the overall pace down.
- General sub‑level growth spread across most sectors.
- In September, the economy shrank a smidge: services flat, car sales got a little lift, IT companies had a slow month.
- Production fell, mainly due to manufacturing, but oil and gas extraction had a small boom.
Sur Ken Thiru: The Accountancy Director
“Whoever thought after a great first half a sluggish third quarter would be a shocker? The reality here is that the UK’s sluggish growth has been hanging around for a long time, thanks to poor productivity and supply constraints.”
- “Future quarters might be as modest as these, thanks to looming tax hikes and global uncertainty.”
- “Lower interest rates will not magically erase these restrictions.”
- “Even a policy easing in December looks unlikely; rate setters will be wary of inflation from the Budget and global headwinds.”
So, the budget’s heavy‑handed fix hasn’t been enough to keep the economy in a steady sprint – it’s merely kept it in a shuffle.
Keep your eyes peeled for more updates on the growth gossip – this story is far from over!
