Copy article

GDP rises by just 0.1% during July to September: "We need to get used to growth figures starting with a zero or minus sign"

ended 15. November 2024

The economy grew by just 0.1% between July and September, according to official data published this morning. This follows GDP growth of 0.5% in Quarter 2 (April to June) 2024. At a sector level, the services sector grew by 0.1% on the quarter; the construction sector grew by 0.8%, while the production sector fell by 0.2%. Meanwhile, real GDP per head is estimated to have fallen by 0.1% in Quarter 3 2024, and is flat compared with the same quarter a year ago. Newspage asked business owners for their views on what this says about the health of the UK economy — and what could happen to the economy in subsequent quarters following the tax hikes announced in the Budget. Their views are below.

10 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The third quarter GDP data is not at all encouraging. It's quite the opposite. Worse still, this government is economically illiterate with zero understanding of the private sector. They view business as the enemy, seeking to extract maximum resources to fund their pet projects. The recent Budget has torpedoed the UK economy, and I’m confident things will only get worse as we head into 2025. However, I suspect alienating farmers, pensioners, and landlords amongst many others will backfire, and with Trump in the White House, Starmer and his team may have their wings clipped. My main concerns are rising unemployment, businesses cutting back and an exodus of talent from the UK. I foresee the government’s approach leading to disaster, potentially forcing Rachel Thieves to turn to the IMF, as Healey did in 1976. On a positive note, my business as a currency exchange broker could benefit if people’s plans to emigrate gain momentum.
Star Quote
Copy

Premium
Debbie Porter
Managing Director at Destination Digital Marketing
The dismal rise in GDP merely confirms what small businesses have been feeling, and have been trying to voice to no avail for quite some time. Everyone is cutting back, removing revenue from the supply chain for businesses in the service industry like my own. Mighty businesses are disappearing from the high street, left-right-and-centre, and the cost of doing business just rose again following the Budget. Our future quarters aren’t going to be seeing any bounce back, and the unemployment figures will rise as everyone attempts to do more with less. There will be lots of businesses working as hard as they can just to keep their businesses viable. These are tough times, but unfortunately we seem to have found ourselves in the doldrums economically as a country for 5 years now. When will it end?
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
When people land at any UK airport, the captain of the plane needs to say “welcome to no growth Britain”. Unfortunately, we need to get used to growth figures starting with a zero or minus sign. On the 30th October the Chancellor hammered the final nail into the coffin of growth for UK plc. Unless she or her line manager does something to turn it around we have serious problems.
Copy

Editor
Chris Barry
Director at Thomas Legal
Growth in the UK is lagging behind other major economies around the world and the outlook, based on this third quarter data, makes for bleak reading. Businesses should batten down the hatches for a harsh winter. The hope is that spring will bring some much needed green shoots but the after-effects of the Budget have yet to feed through.
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Do we have to have an Autumn Budget? The results for the 3rd quarter are not exactly stable, with slow growth in some areas and slight fall in others. Is it worth rocking an unstable boat? The figures for the fourth quarter could make for grim reading unless things improve over the coming weeks.
Copy

Editor
Craig Fish
Director at Lodestone Mortgages
These figures don't make pretty reading. Any small shoots of growth that were previously seen have now been knocked into hibernation by the decisions Reeves and Starmer have made. Sadly the effects of the Budget are yet to be seen, and these numbers are about to get a whole lot worse. Without changes in the Spring Budget, 2025 is set to be another year of misery.
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
UK growth is now lagging behind most of Europe and the rest of the world, and it's before the recent Labour Budget decisions take effect, which will only slow us further as a nation. Businesses will be feeling the pinch at the front and back door, with rising staff costs and interest rates heading the wrong way, with firms having little option but to cut staff hours or lose people altogether, to survive a bleak winter. If we don't find a way of making Britain 'great' again, no special relationship will save us, whichever side of the waters we go cap in hand to.
Copy

Editor
David Stirling
Independent Financial Advisor at Mint Wealth
More miserable figures for the UK today, with the news that our economy is flat-lining. We can't blame the Budget for that as that pain has yet to be fully felt, so we can expect the end of 2024 into 2025 to be a torrid time for small businesses. As the tax hikes trickle through causing abandoned property transactions and reduced employment, it's hard to remain optimistic for the economy.
Copy

Kim McGinley
Director & Specialist Broker at VIBE Finance
The news that GDP rose by just 0.1% during July to September is, sadly, no surprise. Growth in Britain has been stagnant for a while now, and the atmosphere feels increasingly heavy with negativity. The lead up to the Budget was nothing but doom and gloom, preparing us all for the worst and when the Budget finally landed, it delivered exactly what we thought: not enough to address the pressing issues we face. As business owners, we’re left wondering: what’s the plan? Where is Britain heading? We need growth. It’s essential for the economy, for confidence and for our future. The government needs to seriously rethink its approach, particularly towards business owners, who are fundamental to driving this growth. Without policies that support innovation, investment and enterprise, we now find ourselves falling behind other major economies, watching instead of leading. It’s time for action: positive, proactive action to ensure Britain doesn’t just recover but thrives.
Copy

Sam Kirk
Managing Director at J-Flex Rubber Products
Growth of 0.1% makes for dismal reading, however it probably came as no surprise given the caution and nervousness throughout supply chains in the run up to Labour's first Budget. I wonder, and I'm no fan of Trump, whether we need to take a leaf out of America's book and appoint business-minded people to advisory roles in Government instead of just appointing career politicians who have little to no business experience. If we're expecting different results, we've got to do something different.