Zero growth in the last three months
The UK economy did not grow at all in the last three months, according to official figures released by the Office for National Statistics. This zero growth is the weakest figure in a year, following a 0.2% rise in the second quarter. The UK has been dubbed a "stagnation nation" due to its long period of slow or no growth.
Rapid rise in interest rates and slump in housing sales
Resolution research director James Smith attributes the recent stagnation to the rapid rise in interest rates since late 2021. The housing sector has also suffered a slump in sales, while businesses have reduced shipping goods across the country, leading to lower output in the transport sector.
Chancellor Jeremy Hunt's focus on economic growth
Chancellor Jeremy Hunt has stated that the upcoming Autumn Statement will focus on how to get the economy growing. He believes that high inflation is the biggest barrier to economic growth. However, economists believe that the flatlining figures will hinder the government's promise to stimulate economic growth and limit Mr. Hunt's ability to implement tax cuts in his package, which is due in under a fortnight.
Diageo shares drop after sales slowdown
Beverage brand Diageo experienced its largest one-day share drop in two decades after warning of a sales slowdown. The company cited lower consumption than expected, particularly in Latin America, as the reason for the decline in profits.
Redrow lowers profit forecasts as home sales slump
Housebuilder Redrow has revised its profit forecasts for the rest of the year, expecting closer to £180 million in profits instead of the target of £200 million. The company also noted that property chains between buyers were breaking down, contributing to the decrease in sales of new homes.
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