British activity stagnated in the third quarter with a 0.2% drop in gross domestic product (GDP) versus a 0.2% rise in the previous quarter, the Office for National Statistics (ONS) said on Friday. .
The fall in GDP was especially pronounced in September (-0.6%) due, in particular, to the national holiday for the funeral of Queen Elizabeth II, which caused the closure of a large number of companies.
Manufacturing activity fell during the quarter while services activity remained unchanged. The ONS cites rising costs as a factor weighing on business output, with inflation hovering around 10% in the country.
“Extremely Difficult Decisions”
“We are not escaping the global challenges of high inflation and slow growth driven largely by Russia’s illegal war” in Ukraine and gas supply constraints that have pushed up energy prices and inflation.” Chancellor of the Exchequer Jeremy Hunt said in a statement.
“I am under no illusions about the difficult road ahead, which will require extremely tough decisions to restore confidence and economic stability,” he added. “Pour parvenir à une croissance de long terme nous devons enrayer l’inflation, équilibrer les comptes et faire reculer la dette”, at-il argued, affichant une ligne d’orthodoxie budgétaire que fait craindre un retour de l’austerité dans el pais .
The minister is due to present a draft budget next week that should include cuts in public spending and tax increases. The head of labor economics, Rachel Reeves, called the GDP figures “extremely worrying”.
Source: BFM TV
