Closing post
Time to wrap up…
The UK economy slowed to a near-standstill in the third quarter as uncertainty surrounding Labour’s first budget and high interest rates weighed on business and consumer spending.
In a blow to the chancellor, Rachel Reeves, as she attempts push the UK to the top of the G7 growth league, the economy grew by 0.1% in the third quarter of the year, down from 0.5% in the second quarter, according to figures from the Office for National Statistics (ONS).
The UK ranked sixth in the G7 for growth in the third quarter, above Italy but below France, Germany and the US, which grew by o.4%, 0.2% and 0.7% respectively.
Figures released by the ONS on Friday showed that in the three months to the end of September – the first quarter under the new Labour government – services and manufacturing sector output slowed, indicating that uncertainty surrounding the budget and high interest rates contributed to a loss of momentum since the spring.
City economists had expected quarter-on-quarter growth to be 0.2%. Month-on-month GDP shrank by 0.1% in September, falling short of forecasts for growth of 0.2%.
But despite the slowdown, the money markets indicate there’s only an 18% chance of another cut to UK interst rates next month.
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And analysis:
Investors in pharmaceutical companies are selling off stock after Donald Trump nominated the anti-vaccine activist Robert F Kennedy Jr to lead the US Department of Health and Human Services.
RFK Jr has embraced numerous health-related conspiracy theories, and is one of the most persistent and influential vaccine deniers in the US.
Trump’s announcement sent shares in some of the world’s biggest pharmaceutical companies – including Moderna, AstraZeneca and GSK – falling on Friday morning.
The European Commission has forecast that Germany’s economy will shrink by 0.1% this year, casting a shadow over the upcoming general election.
One of Britain’s biggest property developers has reinforced the growing shift to a return to office working, saying that occupancy in its central London offices has grown to an all-time high and the value of its portfolio has returned to growth.
Typhoo Tea is to call in administrators, as Britain’s oldest tea brand struggles with more than £70m in debt amid a sales slump in the highly competitive drinks market.
The pound has dropped to a new four-month low against the US dollar today.
Sterling has lost half a cent to $1.2616, after this morning’s weak UK growth data – and hints from the Federal Reserve that it doesn’t feel in a rush to cut US interest rates.
