According to the revised data from the Office for National Statistics (ONS), the UK economy exhibited no growth in the third quarter of 2024, contrasting with the initial estimate of a 0.1% increase.
This lack of growth is further highlighted by the decline in real GDP per capita, which fell by 0.2% in the third quarter of 2024. This figure is also 0.2% lower compared to the same quarter in the previous year.
The UK, along with Italy, recorded the lowest growth among the G7 countries in the third quarter, with both countries showing stable but non-expanding economic activity.
The earlier slight increase observed in the previous month was not only slower than what experts had anticipated but also marked a significant decline from the 0.5% growth seen between April and June. This slowdown underscores the challenges faced by the UK economy in recent quarters.
In terms of sectoral performance, the services sector showed no growth, while the construction sector saw a 0.7% increase, which was offset by a 0.4% decline in production output. Only 9 out of 20 subsectors experienced growth during this period, a revision down from the initial estimate of 11 growing subsectors.
Nominal GDP, however, increased by 1.2% in the third quarter, up from the previous estimate of a 0.8% increase. When compared to the same quarter a year ago, nominal GDP rose by 4.0%. The implied GDP deflator, which measures the broadest inflation indicator, increased by 3.2% compared to the same quarter in the previous year.
The household saving ratio also saw a slight decrease, dropping to 10.1% in the third quarter from 10.3% in the second quarter. Real households’ disposable income per head showed no growth in the third quarter, following a 1.4% growth in the previous quarter.
