Jakarta, CNBC Indonesia – UK gross domestic product (GDP) showed no quarterly growth in the three months to the end of September, following a rise of 0.2% in the previous quarter.
On an annual basis, UK GDP in the third quarter was 0.6% higher than the same period in 2022. On the other hand, service sector output fell 0.1% in this quarter, but this decline was offset by an increase in construction performance of 0.1 %, while the production sector was stagnant.
British Finance Minister Jeremy Hunt said high inflation remained the single biggest obstacle to economic growth in the country, where the consumer price index remained at 6.7% year-on-year in September.
“The best way to grow our economy sustainably right now is to stick to our plan and keep inflation down,” Hunt said, Hunt said, as quoted CNBC International, Friday (10/11/2023).
“The Autumn Statement will focus on how we get the economy growing healthily again by unlocking investment, getting people back to work and reforming public services so we can achieve the growth our country needs.”
Lindsay James, investment strategist at Quilter Investors, said Friday’s figures confirmed a slowdown that leading indicators have increasingly marked in recent months.
According to him, one indicator is consumer spending and business activity which shows a rift, thereby weakening labor demand.
“September’s data provided a positive surprise thanks to the strength of the UK services sector, but it was not enough to offset July’s negative data and generate any growth in the third quarter compared to the previous quarter. Although it may have avoided a recession this year, the current lack of growth means the UK economy is stagnating with only economic growth of 0.2% in the last six months,” he explained.
“Sadly, for many people, the economic pain is simply delayed. As the Bank of England stated earlier this month that more than half of the impact of rising interest rates on GDP levels is still to come, the UK economy faces growing challenges as 2024 approaches.”
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