The UK economy had zero growth between July and September, revised official figures show.
Initial figures had suggested the economy had grown by just 0.1% between July and September. But that figure has now been revised down to 0%.
Chancellor Rachel Reeves said the challenge to fix the economy was “huge” and October’s Budget would “deliver sustainable long-term growth, putting more money in people’s pockets”.
But one of the UK’s leading business groups, the CBI said its latest company survey suggested “the economy is headed for the worst of all worlds”.
The CBI, which claims to represent 170,000 firms, said companies expect to “reduce both output and hiring” and raise prices as a result of the tax rises announced in the government’s Budget.
The UK economy is measured by gross domestic product – a measure of all the economic activity of companies, governments and people in the country.
The ONS puts out initial estimates on the UK’s economic performance and revises them once it receives more data.
On Monday it also revised down growth figures for April to June to 0.4% from 0.5%.
It said the economy was weaker than initially estimated as bars and restaurants, legal firms and advertising firms performed less well.
“Real household disposable income per head showed no growth,” ONS director of economic statistics Liz McKeown said.
The downward revisions will be a blow to Labour which has made boosting economic growth its top priority.
It has promised to deliver the highest sustained economic growth in the G7 group of rich nations.
Separate figures out last week showed inflation – the rate at which prices increase over time – is rising at its fastest pace since March.
The Bank of England voted to hold interest rates on Thursday, stating it thought the UK economy had performed worse than expected, with no growth at all between October and December.
The Bank downgraded its growth forecast from 0.3% for the final three months of 2024, to zero growth.
