The U.K. economy saw a surprising drop in September and only modest growth in the third quarter after a robust recovery at the beginning of the year.
The Office for National Statistics reports that after growing by just 0.2% in September, the gross domestic product decreased by 0.1% in September. Reuters polled economists, who predicted growth of 0.2% in September.
The British economy expanded by just 0.1% throughout the course of the third quarter. Following a 0.5% expansion in the second quarter of the year, that is less than the 0.2% growth that economists had predicted.
The leading services sector in the United Kingdom increased by just 0.1% during the quarter. While production decreased by 0.2% during the month, construction increased by 0.8%.
It comes as the United Kingdom’s inflation rate dropped precipitously to 1.7% in September, falling below the Bank of England’s 2% target for the first time since April 2021. On November 7, the central bank lowered rates by 25 basis points, bringing its main rate down to 4.75%, thanks in part to the decline in inflation.
Source (CNBC)
