UK economy stagnates in third quarter [Video]

The UK economy showed no growth in the third quarter of 2024, according to revised figures from the Office for National Statistics (ONS). Initial expectations of a modest 0.1 percent expansion were downgraded, revealing GDP flatlined between July and September. 

The disappointing performance comes as the country grapples with stagnation in its services sector and a decline in production output.

The ONS report, which covers the three months immediately after Labour’s new government took office, also revised down the second quarter’s growth figure to 0.4 percent, from a previously reported 0.5 percent. The Bank of England added to the gloom by predicting zero growth for the fourth quarter, signaling continued challenges for the UK economy.

Production output emerged as a key drag, contracting by 0.4 percent during the third quarter. This decline was attributed largely to reduced energy supply and a downturn in manufacturing. The UK’s dominant services sector, which …