Q3 GDP Growth Slows Down Due to Budget-Related Hesitance
- UK economy stagnates in Q3 2024
- GDP increased by 0.1% in Q3 2024 after a growth of 0.5% in Q2 2024
- Services sector grew by 0.1%, construction sector by 0.8% and production sector fell by 0.2%
- Nominal GDP increased by 0.8% mainly driven by compensation of employees and other income
- Retail and new construction work performed well, while telecommunications and wholesale saw falls
- CBI Lead Economist warns uncertainty ahead of the budget may lead to cautious approach in decision making
The UK’s economy has stagnated in the third quarter of 2024, according to the Office for National Statistics (ONS). The growth rate slowed down from 0.5% in Q2 2024 to just 0.1% in Q3 2024. The services sector grew by 0.1%, construction by 0.8%, and production fell by 0.2%. Nominal GDP increased by 0.8% due to higher compensation of employees and other income. CBI Lead Economist Ben Jones warns that uncertainty surrounding the budget may lead businesses to adopt a more cautious approach in decision making, affecting pay, hiring, and investment. The government is urged to prioritize policies that provide certainty and confidence for businesses.
Factuality Level: 9
Factuality Justification: The article provides accurate information about UK GDP growth during Q3 2024, citing data from the Office for National Statistics and includes quotes from experts to support their analysis of the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about UK GDP growth during Q3 of a specific year, citing data from the Office for National Statistics and quotes from experts. It discusses the impact of uncertainty on decision-making due to the budget and potential future implications for businesses. The article stays on topic and supports its claims with evidence.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses UK GDP growth, budget uncertainty affecting decision making, and its impact on businesses’ approach to pay, hiring, and investment. It also mentions the hike in National Insurance Contributions. These topics are related to financial matters and can potentially affect financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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