Due to high inflation and interest rate hikes, the British economy expanded somewhat in the preceding three months before stagnating in the third quarter, according to official figures released on Friday.
According to an announcement from the Office for National Statistics (ONS), there was no increase in the gross domestic product from July to September.
Although it came after a 0.2-percent expansion in the second quarter, that exceeded market forecasts for a 0.2-percent decrease.
Director of economic statistics at the ONS, Darren Morgan, stated, “It is estimated that the economy showed no growth in the third quarter.”
“Services dropped a little with falls in health, management consultancy and commercial property rentals. These were partially offset by growth in engineering, car sales and machinery leasing.”
There were also some growth in manufacturing, led by cars and metal products while construction also expanded.
Activity grew by 0.2 percent in September after downwardly-revised expansion of 0.1 percent in August and zero growth in July.
In reaction to the data, finance minister Jeremy Hunt warned that “high inflation is the single greatest barrier to economic growth”.
Hunt added that his upcoming budget statement, due on November 22, will “focus on how we get the economy growing healthily again”.
Output has been slammed by elevated inflation, which has sparked a cost-of-living crisis, and the Bank of England’s aggressive interest-rate hikes.
“UK economy woes continue as activity slows further,” noted KPMG economist Yael Selfin.