Rachel Reeves hit by fresh blow as UK economy growth slows down again
Rachel Reeves has been dealt a fresh blow after new figures revealed economic growth in the UK slowed in the third quarter of the year.
The economy grew by an unrevised 0.1 per cent between July and September, according to the Office for National Statistics (ONS), while expansion in the second quarter was weaker than first thought, official figures show.
The ONS has confirmed that growth slowed in the third quarter after a cyber attack on Jaguar Land Rover disrupted activity in the manufacturing sector.
When Labor came to power, Ms Reeves promised that the government’s number one mission was to deliver higher economic growth.
But after two budgets he was accused of taking anti-growth measures, including tax increases.
The ONS said output was worse than first thought in the previous three months, with gross domestic product (GDP) growing by 0.2 per cent in the three months to June, while its previous forecast of 0.3 per cent growth had been revised downwards.
The ONS also revised growth for the final quarter of last year to 0.3 per cent from the previously recorded 0.2 per cent, but the result for the whole of 2024 remains unchanged at 1.1 per cent growth.
Liz McKeown, ONS director of economic statistics, said: “Today’s updated figures paint the same picture as our first forecast, with growth continuing to slow in the third quarter.
“Growth in services was partially offset by declines in manufacturing, with a significant decline in automobile production.”
Despite the second quarter revision, the UK economy continued to be the fastest growing economy among the G7 group countries, along with Japan, with a growth of 0.9 percent, followed by the USA.
