UK Economy Saw Sharper-Than-Forecast Slowdown Last Quarter

UK suffers contraction in September as budget worries grew
It marks a slow start to Labour’s promises to boost growth

UK services flatlined in September and manufacturing shrank 1%, the ONS said.Photographer: Anthony Devlin/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Tom Rees, Philip Aldrick, and Irina Anghel

November 15, 2024 at 7:04 AM UTC

Updated on

November 15, 2024 at 2:37 PM UTC

This article is for subscribers only.

The UK economy cooled by more than expected in the third quarter after a surprise contraction in September as anxiety built over the new Labour government’s fiscal plans.

Gross domestic product rose 0.1% from the previous quarter, below the 0.2% gain forecast by economists, data from the Office for National Statistics showed on Friday. The economy shrank 0.1% in September alone, much worse than the 0.2% growth expected.