UK economy stagnates between July and September

1 year ago 26
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The UK's economy failed to grow between July to September compared to the previous three months, official figures show.

Many economists had expected the UK to shrink over the period, by around 0.1%.

However, a stronger September meant the economy showed zero growth, according to the Office for National Statistics.

Last week, the Bank of England said the UK economy was likely to see zero growth until 2025, although it is expected to avoid a recession.

The Bank's comments came as it left interest rates on hold at 5.25%, although this is still the highest level in 15 years.

Interest rates are expected to remain high for some time, and Bank governor Andrew Bailey has said it is "much too early" to be considering rate cuts.

The ONS said that the latest growth figures showed a subdued picture across all sectors of the economy.

The services sector saw a small decline over the three-month period, while the manufacturing sector saw slight growth.

The GDP figures show the health of the UK economy. It is a measure - or an attempt to measure - all the activity of companies, governments and individuals in a country.

If the figure is increasing, it means the economy is growing and people are doing more work and getting a little bit richer, on average.

But if GDP is falling, then the economy is shrinking which can be bad news for businesses. If GDP falls for two quarters in a row, it is typically defined as an economic recession.

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