The UK’s economic growth showed marginal improvement, rising by only 0.1% between June and September, according to the Office for National Statistics (ONS).
- This minimal GDP increase, a decline from previous quarters, fell short of the 0.2% growth anticipated by economists.
- Manufacturing output and information services saw notable declines in September, impacting overall growth.
- Retail figures revealed a mixed performance with a slight rise in sales, yet a decrease in non-food in-store sales compared to last year.
- Economic uncertainty is heightened as retailers face weak consumer confidence and high business rates in the upcoming crucial months.
The latest data released by the Office for National Statistics highlighted a modest growth in the UK’s GDP by 0.1% for the third quarter. This represents a slowdown from 0.5% in the preceding quarter and 0.7% in the first, falling below the expected 0.2% growth set by economists. The monthly GDP figures showed a 0.1% decline in September, particularly affected by reduced outputs in the manufacturing and information and communication sectors.
The retail sector presented a varied picture; while retail sales increased by 2% in September and a further 0.6% in October, there was a year-on-year decline of 1.5% in non-food in-store sales for the same period. Helen Dickinson, the CEO of the British Retail Consortium, noted the seasonal adjustments in consumer behaviour, stating: “As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear. The start of the month also saw a last-minute rush for computers and clothing for the new academic year.”
The economic landscape remains tense as the ‘Golden Quarter’ approaches, a critical period for retail sales extending through the winter months. Retailers are operating under strained conditions characterised by weak consumer confidence and persistent high business rates, which limit potential investments.”
The UK’s growth trajectory faces challenges amid declining industrial outputs and a complex retail environment in the pivotal months ahead.
