“There was no growth in the services sector in the last quarter, while a 0.7% increase in construction was offset by a 0.4% drop in production,” notes the ONS in its press release.
The organization also revised downwards growth in the second quarter, to 0.4%, against 0.5% previously.
“The economy was weaker in the second and third quarters of this year than our initial estimates suggested, with bars and restaurants, law firms and the advertising industry, in particular, performing worse results,” explained the ONS’s director of economic statistics, Liz McKeown.
Tax increases
These figures come to thwart the plans of the Labor government, which has made growth a priority but is currently struggling to convince, its first budget, made significant tax increases and exceptional loans, having plunged the economic world into the expectation.
“The challenge we face to recover our economy and properly finance our public finances after 15 years of neglect is enormous,” commented Finance Minister Rachel Reeves in a press release.
It promises “long-term sustainable growth” and “more money in the pockets of citizens, thanks to increased investments and relentless reforms”.
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