UK Staves Off Recession Threat for Now With Stagnant Quarter

  • GDP flatlines in third quarter while spending, investment fall
  • Rishi Sunak struggling to deliver on pledge to grow economy
WATCH: “I think still more likely than not you’ll get a small negative in Q4.” Santander economist Victoria Clarke reacts after the UK economy flatlined in Q3Source: Bloomberg
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The UK economy flatlined in the third quarter, defying forecasts of a small contraction and ensuring a recession is avoided this year, as strong trade came to the rescue of poor domestic activity.

Gross domestic product was unchanged from the second quarter, the Office for National Statistics said Friday. Economists surveyed by Bloomberg had forecast a 0.1% decline on average. In September alone, GDP rose 0.2%.