UK Economy Stagnates Amid High Interest Rates and Inflation Drag

The U.K. economy experienced no growth in the third quarter, signaling a period of stagnation and potentially leading to a recession. The housing industry has been hit hard by high interest rates, causing the services sector to contract. The manufacturing industry also slumped, while repairs helped offset the decline in new work in the construction sector. In comparison, Europe is facing similar stagnation, while the United States continues to experience strong economic growth. The Bank of England predicts minimal growth for the U.K. economy in the coming months, with high interest rates expected to further impact business investment and consumer spending. The government plans to introduce measures to bolster the economy, but substantial changes to taxes or spending are not expected at this time.