UK economy shows 0.1 percent growth in GDP in Q3, less than expectations
Date
11/17/2024 4:20:44 AM
(MENAFN) The UK Economy showed a modest 0.1 percent growth in gross domestic product (GDP) during the third quarter of 2024, according to flash data released on Friday. This growth was lower than expected, falling short of market forecasts, which had anticipated a 0.2 percent increase. The latest figure represents a slowdown from the 0.5 percent expansion seen in the previous quarter, highlighting a deceleration in the pace of economic recovery.
The economic expansion in the third quarter was primarily driven by the services sector, which posted a small 0.1 percent increase. Additionally, the construction industry showed a stronger performance, with output rising by 0.8 percent during the period. However, the production sector experienced a contraction, with production falling by 0.2 percent compared to the previous quarter, indicating weaker performance in manufacturing and industrial activity.
On an annual basis, the UK's GDP growth for the third quarter of 2024 was estimated at 1 percent, reflecting a year-over-year increase. This suggests that while the economy is still expanding, the pace of growth has slowed compared to earlier periods. The relatively low growth figure indicates that challenges persist for the UK economy, including pressures on key sectors like production and manufacturing.
Overall, the third-quarter performance signals a cooling off in the UK economy after a stronger second quarter. The lower-than-expected growth has raised concerns about the strength of the economic recovery, especially as global uncertainties and domestic challenges, such as inflation and labor market pressures, continue to impact key sectors. Policymakers will likely closely monitor these trends in the coming months to assess the need for adjustments in fiscal or monetary policy.
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