The economy grew by just 0.1 per cent in the third quarter of this year, according to data from the Office for National Statistics (ONS).
The figures are down from the 0.5 per cent growth in the second quarter of 2024, and weaker than the 0.2 per cent expected.
Responding to the new growth figure, chancellor Rachel Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.
“At my budget, I took the difficult choices to fix the foundations and stabilise our public finances.
“Now we are going to deliver growth through investment and reform to create more jobs and more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal.”
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Liz McKeown, ONS director of economic statistics, said: “The economy grew a little in the latest quarter overall as the recent slowdown in growth continued.
“Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter.
“In September the economy shrank a little. Services showed no growth with a notable increase in car sales offset by a slow month for IT companies.
“Production fell overall, driven by manufacturing, though there was an increase in oil and gas extraction.”
It comes after Andrew Bailey, the governor of the Bank of England, said Brexit has “weighed” on the British economy and called for relations with the European Union (EU) to be rebuilt.
In a speech at the City of London’s Mansion House on Thursday evening, prior to the release of the growth figures, Bailey said although he takes “no position on Brexit per se… I do have to point out the consequences”.
“The changing trading relationship with the EU has weighed on the level of potential supply”, he told investors gathered at the annual event.
Josh Self is Editor of Politics.co.uk, follow him on X/Twitter here.
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