UK ECONOMY ‘GRINDING TO A HALT’ AS GROWTH SLUMPS

THE Government faces a stark warning about the looming “spectre of recession” following economic stagnation in the latter half of this year, with projections suggesting further weakness in 2026.

- SAMUEL NORMAN

The forecasts are bad news for Chancellor Rachel Reeves

Data released yesterday by the Office for National Statistics (ONS) revised downward the second quarter’s economic expansion to 0.2% from the previously reported 0.3%.

The third quarter saw meagre growth of just 0.1%, with the ONS indicating the figures illustrate a decelerating economy.

Lindsay James, investment strategist at Quilter, said the data “all but confirms what has become very clear in the second half of the year - the UK economy is grinding to a halt and showing little sign of achieving what it did in the first half of the year”