Stagnant GDP shows scale of challenge for Rachel Reeves at autumn budget | Economic growth (GDP)

Rachel Reeves’ message “Our economy is not broken, but feels stuck”.

After restarting the economy into 1 1 priority for the government, it has been an honest assessment for more than a year for more than one year than a chancellor.

The latest GDP figures, published on Friday, emphasize the scale of the challenge for Reeves in the autumn budget. While the economy fought for acceleration during the summer, growth slowed in June from 0.4% in June.

Some weakness can be explained. Most economists waited for a slowdown after recording the most powerful growth in the G7 in the first half of the year.

Producers and exporters ran to defeat the promotion of Donald Trump’s tariffs in the beginning of 2025. However, the US stocks are now filled and global uncertainty on the industry has fallen new orders – in July, in July, the production production decreased by 1.1%.

Tax changes also came to the fore in the real estate market this spring and affected automobile sales and led to a monthly volatility in the GDP number.

Household is under the pressure of increasing inflation. Consumer services, a good month for retailers for hot weather conditions and the EURO 2025 Women’s Football Tournament won the UK’s sales helped to remove sales. However, the expenditures discussed together in the last three months decreased by 0.6% in consumer services and in the tricks.

The government also blames the inadequate investments of the years under conservatives. However, although it is clear that the economy has not been injection in recent years, there are signs that Reeves has been added to the winds of England.

Economists emphasize the damage to businesses and businesses from the first autumn budget of the chancellor. Reeves’ increase in £ 25 billion in the employer’s national insurance contributions (NICs) was accused of hitting recruitment requests and fidelity investments.

When the chancellor is preparing for the second budget on November 26, difficulty is important: growth is weak, but tax increases or expenditure cuts may be required to meet a deficiency expected in government financing.

Business leaders warn that the economy will increase to the important winds faced by the economy by investing and multiplying consumer expenditures. Government expenditure cuts would harm politically. The bond market is closely monitoring investors.

Among the major concerns, speculation on tax changes in the budget will reduce business activities in the coming months, even before arriving in November in the carbon copy of Labour’s first months last year.

Meanwhile, the global ground continues to be challenging as Trump’s tariff policies focus on international trade. Household financing in the UK is bored with the increase in inflation, the increase in wage is slowing – the consumer is hitting the power of expenditure.

On the more positive side, growth is clearly under pressure, but does not collapse. The last moment of the PMI monthly services of the private sector business activity, argued that August is a solid month. Most economists, including those at the International Monetary Fund, envision to grow slightly above 1%this year. Although historically weak, growth is the same despite difficulties.

However, politically, a message in which the economy is only about confusing is not almost useful. For the chancellor, there will be a high -betting challenge to solve the British economy.