This morning, we woke up and saw that UK’s economic growth showcased a slowdown in its third quarter. If we rewind back to the first half of 2024, with Q1 producing the strongest figures of 0.7% growth, followed by Q2 of 0.5%.
Unfortunately for the UK economy we have seen a rapid pullback to 0.1% in Q3. Alarmingly September on it’s own retreated in economic output and we saw it contracting by -0.1%. So what’s the reasons for UK’s economy deteriorating its economic growth?
There is a number of factors that’s playing part in the performance. Firstly, leading up to the autumn budget, UK business confidence fell drastically to its lowest point since the election. Concerns from business owners of changes in fiscal policies – taxes, held business on their backfoot to first see what this would mean. Now that we know of the outcome with higher national insurance and a higher minimum wage – it reduces productivity due to some businesses are forced to reduce staff numbers. Interestingly we also heard from Bank of England governor Andrew Bailey mentioning that he would not involve himself with politics and after said that he don’t have an opinion on Brexit but its has left its consequences on trade flow.
