The UK economy experienced a marginal growth of 0.1% in the third quarter, which was lower than expected. This indicates a potential slowdown in economic momentum after a stronger expansion in the second quarter.

UK Economic Growth

The services sector saw a modest growth of 0.1%, while construction output increased by 0.8% and production declined by 0.2%.

Inflation and Interest Rates

Inflation in the UK dropped to 1.7% in September, below the Bank of England's target of 2%, leading to a 25 basis points interest rate cut.

Government Initiatives

The government aims to stabilize public finances and foster growth through investment and reform. The Bank of England predicts that the government's tax-raising budget could boost GDP by 0.75 percentage points within a year, but it may also lead to an upward revision of inflation forecasts.

Global Economic Environment

The global economic environment is uncertain due to the US election results and potential tariffs proposed by President-elect Donald Trump. Domestic factors such as business and consumer confidence are also impacting economic output.

Impact on British Pound

The British pound experienced slight fluctuations in response to the economic data and geopolitical landscape.

Future Outlook

Further rate cuts by the Bank of England are unlikely due to inflation risks and global economic headwinds. Balancing growth initiatives with price stability is a challenge for the central bank. The interplay between fiscal policy, monetary policy, and external factors will be crucial in determining future growth and stability in the UK economy.