The figures for July-September followed on the back of a 0.3% growth performance over the previous three months and the 0.7% expansion achieved between January and March.<\/p>\n
Money latest: The \u00a3110 benefit 1.1 million older Britons don’t claim<\/a><\/p>\n 3:22<\/p>\n Growth ‘slightly worse than expected’<\/p>\n The encouraging start to 2025 was soon followed by the worst of Donald Trump’s trade war salvoes and the implementation of budget measures that placed employers on the hook for \u00a325bn of extra taxes.<\/p>\n Economists have blamed those factors since for pushing up inflation and harming investment and employment.<\/p>\n ONS director of economic statistics, Liz McKeown, said: “Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period. There was also a further contraction in production.<\/p>\n \u201cAcross the quarter as a whole manufacturing drove the weakness in production. There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.<\/p>\n 5:10<\/p>\n What next for the UK economy?<\/p>\n \u201cServices were the main contributor to growth in the latest quarter, with business rental and leasing, live events and retail performing well, partially offset by falls in R&D [research and development] and hair and beauty salons.”<\/p>\n The weaker than expected figures will add fuel to expectations that the Bank of England can cut interest rates at its December meeting after November’s hold.<\/p>\n The vast majority of financial market participants now expect a reduction to 3.75% from 4% on 18 December.<\/p>\n Data earlier this week showed the UK’s unemployment rate at 5% – up from 4.1% when Labour came to power with a number one priority of growing the economy.<\/p>\n Since then, the government’s handling of the economy has centred on its stewardship of the public finances.<\/p>\n 1:41<\/p>\n Chancellor questioned by Sky News<\/p>\n The chancellor was accused by business groups of harming private sector investment and employment through hikes to minimum wage levels and employer national insurance contributions.<\/p>\n The Bank has backed the assertion that hiring and staff retention has been hit as a result of those extra costs.<\/p>\n There is also evidence that rising employment costs have been passed on to consumers and contributed to the UK’s stubbornly high rate of inflation – a figure that is now expected to ease considerably in the coming months.<\/p>\n Rachel Reeves has blamed other factors – such as Brexit and the US trade war – for weighing on the economy and leaving her facing a similar black hole to the one she says she inherited from the Conservatives.<\/p>\n Her second budget is due on 26 November.<\/p>\n Read more:![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/e47ccb03b4dead0f664749b1769b5d2dd9ec0781dd583c4b41bbe6da8a354f16_7080695.jpg\")
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Chancellor’s own goals have exacerbated budget challenges<\/a>
Starmer hints two-child benefit cap to be axed in budget<\/a>
Will Reeves repeat Denis Healey’s 1975 horror budget?<\/a><\/p>\n