The U.K. economy flatlined in the third quarter, initial figures showed Friday.
Services sector output dropped 0.1% on the quarter, but the decline was offset by a 0.1% increase in construction performance, while the production sector flatlined.
U.K. Chancellor of the Exchequer Jeremy Hunt said high inflation remains the "single greatest barrier to economic growth" in the country, with the consumer price index remaining at 6.7% year-on-year in September.
While somehow avoiding a recession this year, today's no growth reading means the UK economy is flatlining with only 0.2% economic growth in the last six months."
As the Bank of England stated earlier this month that more than half of the impact of higher interest rates on the level of GDP is still to come through, the U.K. economy faces growing headwinds as we approach 2024."
Persons:
Jeremy Hunt, Hunt, Lindsay James
Organizations:
Gross, Services, Chancellor, Quilter Investors, Bank of England
Locations:
Canary, London, U.K