Summary
The UK's economic growth slowed in the July-to-September quarter, with a small 0.1% increase that fell short of predictions. September saw a decrease in growth, partly due to a significant drop in car production following a cyber-attack. The government's upcoming Budget needs to address these slow growth concerns, focusing on stimulating consumer spending and business investment while managing tax changes and borrowing.
Key Facts
- The UK economy grew by only 0.1% between July and September, below expected levels.
- In September, the economy shrank due to a major fall in car production after a cyber-attack on Jaguar Land Rover.
- The Office for National Statistics noted that a stable car production would have led to positive growth in September.
- Slow growth is also linked to decreased consumer spending and business investment.
- High employment costs and ongoing uncertainty have affected economic momentum.
- The Budget aims to create stability and confidence, while managing taxes and borrowing rules.
- A possible Bank of England interest rate cut could happen soon, which might lower borrowing costs.
- Despite challenges, the UK could still become the second fastest-growing economy in the G7 this year.
