A recession in the UK is looming, experts have warned after UK GDP quarterly data showed the economy ground to a halt in the second half of the year.
The GDP quarterly national accounts data showed the UK economy grew by just 0.1% in Q3, compared to 0.2% in the second quarter of the year – which was revised down from 0.3% – and 0.7% in the first. Growth was primarily driven by 0.2% increases in services and construction, while the production sector added downward pressure, with a fall of 0.3%.
Investment experts say last month’s Autumn Budget will not help slowing growth, with the Office for Budget Responsibility (OBR) forecasting no impact on the economy from the policy changes announced.
Lindsay James, investment strategist at wealth manager Quilter, said: “Today’s GDP data all but confirms what has become very clear in the second half of the year – the UK economy is grinding to a halt and showing little sign of achieving what it did in the first half of the year.
“Going forward, November’s Budget measures will do nothing for growth after the OBR forecasted zero impact from the policies introduced at the despatch box.
“Instead, the government is going to have to hope that previous measures taken to date begin to bear fruit, or that geopolitical challenges calm down enough that global trade can rebound. Unfortunately, neither seems particularly encouraging right now and as such the first half of next year is likely to be more of the same, if not worse with the spectre of recession beginning to loom.”
