Office for National Statistics GDP report for Q1 2025

UK Q3 GDP Revised to 0% as CBI Warns of 'Worst of All Worlds' in 2025

Dec 23, 2024, 07:30 AM

Revised figures from the Office for National Statistics (ONS) show that the UK economy flatlined between July and September 2024, with GDP growth revised down from an initial estimate of 0.1% to 0%. On a yearly basis, the economy grew by 0.9%, down from the previous estimate of 1%. The Confederation of British Industry (CBI) warned that the economy is 'headed for the worst of all worlds' as businesses expect activity to decline sharply in early 2025. Business expectations are at their lowest since October 2020, with firms anticipating sharp reductions in headcount and hiring intentions at their worst since October 2020. The CBI's growth indicator suggests a steep decline in private sector activity over the next three months. Official data also showed that business investment increased by 1.9% quarter-on-quarter, exceeding estimates of 1.2%. The lack of growth poses a challenge for Chancellor Rachel Reeves and the Labour government, with criticism mounting over the recent budget and its impact on business confidence.