Rachel Reeves ‘not satisfied’ with summer slowdown as UK slips down G7 growth leaderboard – business live
Latest UK GDP growth report shows UK grew by just 0.1% in July-September, a slowdown on the first half of the year
Luke Bartholomew, deputy chief economist at investment group abrdn, also points the finger at the budget:
“The economy was always going to slow from the famously “gangbusters” pace of the first half of this year, but the extent of the slowdown is a bit more pronounced than expected.
With activity growth in September being reported as particularly weak, it is plausible that some of slowing is the result of elevated uncertainty at that time, as firms and households speculated about possible tax changes ahead of the Budget. That said, it is also possible that this just represents normal monthly volatility rather than anything more fundamental.
“The UK economy stalled over the third quarter. Uncertainty ahead of the Budget probably played a big part, with firms widely reporting a slow-down in decision making. Hopefully this will prove to be a blip. We still expect the economy to return to a path of modest growth in the year ahead. But downside risks to the outlook have increased.
“The Budget has set off warning lights for business. The hike in National Insurance Contributions alongside other increases to employers’ cost base will add to the burden on business. And it is expected to trigger a more cautious approach to pay, hiring and investment as companies work through what it means for their own budgets.
Continue reading...Topics
-
Reeves ‘not satisfied’ with growth as Tories accuse Labour of talking down economy – UK politics live
World - The Guardian - 17 minutes ago -
Rachel Reeves loosens UK welfare spending target
World - Financial Times - November 2 -
Reeves hints UK will urge Trump not to raise tariffs as economists fear his policies will cut growth – UK politics live
World - The Guardian - November 6 -
My fiscal rules will provide the stability on which growth depends
Business - Financial Times - October 24 -
Starmer insists pro-growth policies on way after OBR’s budget warnings – UK politics live
World - The Guardian - October 31 -
IMF upgrades UK growth forecast in boost to Reeves
Business - Financial Times - October 22 -
How can Rachel Reeves fill the UK’s £40bn Budget gap?
Business - Financial Times - October 18 -
UK Budget as it happened: Rachel Reeves raises tax, spending and borrowing
Business - Financial Times - October 30
More from The Guardian
-
RFK Jr condemned as ‘clear and present danger’ after Trump nomination
World - The Guardian - 10 hours ago -
Middle East crisis live: ‘Heavy strike’ reported in Beirut after Israeli evacuation order
World - The Guardian - 8 minutes ago -
Cop summits ‘no longer fit for purpose’, say leading climate policy experts
World - The Guardian - 10 hours ago -
Pakistan military has no intention of cutting deal with jailed former prime minister Imran Khan – sources
World - The Guardian - 2 hours ago -
Gladiator knife handle found in Tyne ‘reflects spread of Roman celebrity culture’
World - The Guardian - 5 hours ago
Latest in World
-
Middle East crisis live: ‘Heavy strike’ reported in Beirut after Israeli evacuation order
World - The Guardian - 8 minutes ago -
Reeves ‘not satisfied’ with growth as Tories accuse Labour of talking down economy – UK politics live
World - The Guardian - 17 minutes ago -
England fans’ treatment in Greece investigated; Lineker on exit: football – live
World - The Guardian - 17 minutes ago -
Shel Talmy, producer for the Who, the Kinks and David Bowie, dies aged 87
World - The Guardian - 21 minutes ago -
Fire in Retirement Home in Spain Leaves at Least 10 Dead
World - The New York Times - 24 minutes ago