UK economy flatlined last quarter revised figures reveal

The latest revised figures from the Office for National Statistics have revealed the UK economy did not grow in the third quarter of this year.

The statistics watchdog had previously said the economy grew 0.1 per cent in the third quarter. However, according to the latest figures, the economy flatlined, leaving the UK with no growth between July and September in the run-up to the Budget.

As a result, the UK tied with Italy for the lowest growth in the G7 during the third quarter of 2024.

Growth in the second quarter of this year was also revised down to 0.4 per cent.

In September, the ONS said GDP had grown by 0.5 per cent, which was cut down from previous estimates.

Meanwhile, real household disposable income per person was also estimated not to have grown during the last quarter, following a growth of 1.4 per cent in the previous quarter.

“The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge,” said Chancellor Rachel Reeves in response to the data.

“But this is only fuelling our fire to deliver for working people. The Budget and our plan for change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform.”

The news came as the latest growth indicator survey from the Confederation of British Industry predicted a sharp fall in business activity in the new year.

Growth expectations fell to their weakest since November 2022, in the aftermath of Liz Truss’ Mini Budget.

In the survey, the services sector reported it was expecting a decline in activity, while manufacturers forecast that output will fall sharply in the first three months of 2025.

Last week, the Bank of England also revised its growth forecasts for the last quarter of 2024, expecting the UK economy to not grow at all, compared to 0.3 per cent growth estimates made in November.

“The economy was weaker in the second and third quarters of this year than our initial estimates suggested, with bars and restaurants, legal firms and advertising, in particular, performing less well,” said Liz McKeown, director of economic statistics for the ONS.

“The household saving ratio fell a little in the latest period, though remains relatively high by historic standards. Meanwhile, real household disposable income per head showed no growth.”