UK economy stagnates in third quarter

The UK economy stagnated in the third quarter of the year, according to figures released on Monday by the Office for National Statistics.

The economy showed no growth, down from a previous estimate of 0.1% growth.

The ONS also revised its estimate for growth in April to June to 0.4%, down from 0.5% initially estimated.

The data showed there was no growth in the services sector in the latest quarter, while a 0.7% increase in construction was offset by a 0.4% fall in production.

Liz McKeown, director of economic statistics at the ONS, said: "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.

"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."

Paul Dales, chief UK economist at Capital Economics, said: "Overall, these data suggest that after a bumper first half of the year, the economy ground to a halt in the second half of the year due to a combination of the lingering drag from higher interest rates, weaker overseas demand and some concerns over the policies in the Budget.

"Our hunch is that 2025 will be a better year for the economy than 2024. But more recent data suggest the economy doesn’t have much momentum as the year comes to a close."