LONDON -- Britain's gross domestic product (GDP) registered no growth in the third quarter of 2024, revised down from the first estimate increase of 0.1 percent, official data showed on Monday.
According to the Office for National Statistics (ONS), from July to September, the services sector output saw no growth, while a 0.7 percent increase in construction was offset by a 0.4 percent fall in production.
"The economy was weaker in the second and third quarters of this year than our initial estimates suggested, with bars and restaurants, legal firms and advertising, in particular, performing less well," ONS Director of Economic Statistics Liz McKeown said.
For the GDP growth in the second quarter, the ONS also revised it to 0.5 percent, down from its first estimate of 0.6 percent growth.
The downward revision of GDP growth comes amid declining public confidence in the economy and increasing pressure on the Labour government, which assumed power in July after 14 years in opposition.
Responding to the GDP data, Chancellor Rachel Reeves said: "The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge."
"The Budget and our plan for change will deliver sustainable long-term growth, putting more money in people's pockets through increased investment and relentless reform," she added.
Data for the last quarter of the year do not look promising. Last week, Britain's central bank, the Bank of England, forecast zero GDP growth in the fourth quarter, weaker than the 0.3 percent growth predicted in November.
The biggest downside risk to economic growth, except big external shock, is that the employer burden for the British business community has been layered on too much and too fast, said Simon French, chief economist at investment bank Panmure Liberum.
