{"id":43825,"date":"2024-10-03T12:20:21","date_gmt":"2024-10-03T12:20:21","guid":{"rendered":"https:\/\/kede.com.br\/news\/uk-economy-grew-less-than-thought-in-spring\/"},"modified":"2024-10-03T12:20:22","modified_gmt":"2024-10-03T12:20:22","slug":"uk-economy-grew-less-than-thought-in-spring","status":"publish","type":"post","link":"https:\/\/kede.com.br\/news\/uk-economy-grew-less-than-thought-in-spring\/","title":{"rendered":"UK economy grew less than thought in spring"},"content":{"rendered":"


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The UK’s economy grew by less than previously estimated between April and June, according to official figures.<\/p>\n

It expanded by 0.5%, down from an initial reading of 0.6%, after output in the manufacturing and construction sectors fell by more than first thought. <\/p>\n

The data has emerged as the Labour government, which has made economic growth one of its key policies, prepares to announce its first Budget in four weeks’ time.<\/p>\n

Labour has been criticised for its gloomy outlook with Prime Minister Sir Keir Starmer having warned that the Budget will be “painful”, but Chancellor Rachel Reeves recently attempted to strike a more upbeat note<\/a>, saying that Britain\u2019s \u201cbest days lie ahead\u201d.<\/p>\n<\/div>\n

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Paul Dales, chief UK economist at Capital Economics, said the downward revision “shouldn\u2019t make the Bank of England worry too much about the economy running out of momentum”. <\/p>\n

The latest growth figures are not expected to lead to significant changes by the Office for Budget Responsibility<\/a>, which is preparing forecasts for next month\u2019s Budget. <\/p>\n

The independent forecaster monitors the government’s spending plans and performance and publishes its projections at the same time as the government outlines its Budget.<\/p>\n

The Office for National Statistics (ONS), which published the figures, said the production of transport and related equipment tumbled by 3.1% between April and June after a long period of growth.<\/p>\n

It was first estimated to have fallen by 0.7%.<\/p>\n

The ONS said there was evidence to suggest that car manufacturers had cut output while they prepare for the shift to making electric cars. <\/p>\n<\/div>\n

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Construction also dropped due to a continuing decline in building new homes. However, the ONS said there were some signs this was beginning to ease.<\/p>\n

Mr Dales said that while the downward revision was not a major cause for concern, “it may add to the Bank\u2019s view that interest rates need to be reduced further.”<\/p>\n

The Bank of England cut interest rates for the first time in nearly four years in August, to 5% from 5.25% as inflation has cooled. <\/p>\n<\/div>\n

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The ONS revised up economic growth for last year from 0.1% to 0.3% due to stronger income data as well as new updated information about the size of different industries. <\/p>\n

The figures also showed that the household saving ratio rose to 10% in the spring compared to 8.9% in the first three months of the year “meaning people were keeping more of their disposable income locked into savings”.<\/p>\n

Liz McKeown, director of economic statistics for the ONS, said: “Our latest data show that household savings continue to increase and are now at their highest rate since the Covid-19 lockdowns.”<\/p>\n<\/div>\n<\/div>\n


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Getty Images The UK’s economy grew by less than previously estimated between April and June, according to official figures. It expanded by 0.5%, down from an initial reading of 0.6%, after output in the manufacturing and construction sectors fell by more than first thought. The data has emerged as the Labour government, which has made […]<\/p>\n","protected":false},"author":1,"featured_media":43826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[61],"tags":[540,3255,3044,2346],"_links":{"self":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/43825"}],"collection":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/comments?post=43825"}],"version-history":[{"count":1,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/43825\/revisions"}],"predecessor-version":[{"id":43827,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/43825\/revisions\/43827"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media\/43826"}],"wp:attachment":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media?parent=43825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/categories?post=43825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/tags?post=43825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}