The UK economy showed no growth in the third quarter of 2023, according to revised figures from the Office for National Statistics, marking a downgrade from the initial estimate of 0.1 per cent.
The stagnation comes as business groups warn that activity is set to fall at the start of the new year.
The Confederation of British Industry (CBI) has issued a stark warning that the UK economy is “headed for the worst of all worlds” with activity set for a “steep” decline in the coming quarter.
The business organisation has pointed to Chancellor Rachel Reeves’s recent budget as a key factor, with growth expectations now falling to their lowest level in more than two years.
Private sector firms are bracing for a challenging start to 2025, with plans to reduce output, cut back on hiring, and increase prices.
Alpesh Paleja, the CBI’s interim deputy chief economist, painted a grim picture of the current business climate.
He said: “There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer.”
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