The UK’s GDP grew by a modest 0.1% from June to September 2024, marking a slowdown from previous quarters.
- This growth was below the 0.2% forecasted by economists, highlighting weaker economic performance.
- September saw a 0.1% fall in GDP, influenced by decreased manufacturing and communication outputs.
- Retail sales showed a mixed pattern with in-store non-food sales declining compared to last year.
- Economic challenges continue as consumer confidence remains fragile amidst high business rates.
The UK’s gross domestic product (GDP) experienced a mild increase of 0.1% between June and September 2024, according to the latest figures released by the Office for National Statistics (ONS). This rise represents a significant slowdown from the 0.5% growth observed in the second quarter and the 0.7% growth in the first quarter of the year. Economists had anticipated a 0.2% growth for the third quarter; however, the actual figures fell short, indicating a weaker economic performance than expected.
In September, monthly real GDP declined by 0.1%. This drop was primarily due to reductions in both manufacturing output and information and communication services. These sectors have continued to face challenges, affecting overall economic growth negatively. August had seen a modest 0.2% growth, while July’s performance had remained flat with no growth reported.
Despite overall economic sluggishness, the retail sector recorded some growth in sales. British Retail Consortium (BRC) and KPMG data indicated that UK retail sales increased by 2% in September. This was followed by a 0.6% rise in October. However, the in-store non-food sales over the three months leading up to September decreased by 1.5% compared to the same period last year, which previously saw a growth of 0.3%.
Helen Dickinson, CEO of the BRC, noted the seasonal shift in consumer behaviour, stating, “As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear. The start of the month also saw a last-minute rush for computers and clothing for the new academic year.” However, challenges such as weak consumer confidence and high business rates continue to pose limitations on retailers’ ability to invest further.
Looking ahead, the retail sector is entering what is known as the ‘Golden Quarter’. This period is crucial for the economy, given the potential for increased consumer spending. Nevertheless, the sector must navigate through significant hurdles, including the persistent issue of subdued consumer confidence and the ongoing burden of elevated business rates.
The UK’s economic growth has slowed down, with varying performances across sectors, highlighting the ongoing challenges faced by the economy.
