Economy grows at fastest pace since early 2024 - does it feel like it to you?

From our perspective, yes, it certainly feels like the economy is growing. At Rowley Turton we're on course for a record year, with strong growth in income and new clients.

However, I think we're benefiting from a perfect combination of demographics and reputation.

Most of our work comes from people approaching retirement or already retired, so an ageing population naturally helps. Equally, 30 years of hard work building our reputation is paying off.

But I wouldn't suggest our experience is necessarily representative of the wider economy.

Indeed, some of our clients in the construction sector have reported much tougher times, which seems to be reflected in today's GDP figures.

So whilst the growth figures are welcome, I suspect plenty of businesses will be scratching their heads and wondering where all this growth is.

Todays GDP figures bring some early Xmas cheer for the Chancellor but all is not what is seems on the coalface.

The growth is attributable to the growth in the AI sector which is little comfort to those on the breadline. The retail sector continues to be dogged by high rents and rates and squeezed consumer spending.

As construction, pubs and the hospitality sectors continue to suffer consumer are being careful about their expenditure in the lead up to the festive season.

The wars couldn't end soon enough for many so pressures ease on the cost of fuel and energy. The recent rate hike is also another thorn in the side of the economy.

GDP grew 0.7%, but nobody pays their bills with GDP. It feels like the demand for financial planning and advice is growing.

Markets consider many things, including profits and interest rates but even when inflation eases, the weekly shop can still get dearer.

If you’re working, it’s your pay packet and outgoings that matter.

In retirement, a rising portfolio can give you room to spend, while someone living mainly on the State Pension feels every jump in the food bill.

In financial planning, the question clients ask is whether they can afford to spend more or retire sooner. The GDP headline tells them very little about either.

Stop the press. All is well in UK economic growth. Not quite. This morning’s 0.7% third quarter GDP figure feels like a statistical mirage against what I see on the ground in my sector. There’s no boom, just defensive resilience. Commercial and private clients aren’t spending more, they’re spending smarter and more cautiously. UK SMEs are watching every penny, stretching project timelines and locking in forward currency contracts early to shield thin margins from exchange rate swings. Meanwhile, asset-heavy regional firms in haulage, agriculture and construction are being left behind, squeezed by wage inflation, tax pressures and high borrowing costs that London-centric averages conveniently mask. GDP is a blunt instrument. It measures aggregate volume, often flattered by public spending, not business health. SME net profit margins and cash flow tell a far more sobering story than any headline.

The economy may be growing on a spreadsheet, but plenty of households would be forgiven for wondering where the party is. A 0.7% rise in GDP is welcome, but the detail shows a very uneven recovery: services grew 0.9%, while construction contracted 0.7% and private housing new work fell 4.7%. Consumers are spending a little more, but mortgage costs and household bills mean many are still watching every pound. GDP tells us the size of the economic pie is increasing. It doesn't tell us whether the average family feels they're getting a bigger slice.

Growth is welcome, but it doesn’t feel like it on the ground. Clients tell us they’re worried. Prices are up, mortgage payments are up and taxes are going up. A headline GDP figure doesn’t change how someone feels when they check their bank balance at the end of the month. Confidence is what matters, and right now it’s fragile. Christmas will be the real test, and the retail sales figures that follow will show us where people really are.

Whilst 1.9% larger over the year sounds positive, that's against a backdrop of inflation at 3.5%. This means that in real terms the economy is worth less than it did a year ago. It highlights how critical it is for the government to attack this from both ends. A growth figure higher than inflation is the target but weak growth and a persistent cost of living crisis mean we're stagnating.