The UK faces stagnation as economy stalls; Alison Rose to lose £7.6m due to Farage row – a summary of recent events

11 Nov, 2023

The UK faces stagnation as economy stalls; Alison Rose to lose £7.6m due to Farage row – a summary of recent events

During the summer, the UK faced economic stagnation, earning the title 'stagnation nation' as the latest GDP data revealed no growth in the three months up to September. The dominant services sector experienced a slight contraction.

Director of economic statistics at ONS, Darren Morgan, announced, "The third quarter estimated no growth in the economy, where the services sector saw declines, particularly in health, management consultancy, and commercial property rentals. However, growth in engineering, car sales, and machinery leasing partially offset these declines."

Morgan further stated, "September witnessed slight economic expansion driven by growth in film production, health, and education, tempered by declines in retail and computer programming."

Though slightly better than anticipated, the data underscores the impact of high interest rates on growth. The UK's performance fell behind the US and France but fared marginally better than Germany and the broader eurozone.

Chancellor Jeremy Hunt identified inflation as the primary obstacle to growth, while shadow chancellor Rachel Reeves expressed concern, stating, "Growth remains stagnant, and the country's economic condition is declining."