UK Economy Struggles Amidst Inflation and Stagnation

The UK economy showed no quarterly growth in the third quarter, with GDP remaining flat compared to the previous quarter. The services sector output declined, but this was offset by a slight increase in construction performance. UK Chancellor of the Exchequer Jeremy Hunt highlighted high inflation as the biggest obstacle to economic growth, with the consumer price index remaining at 6.7% year-on-year in September. The figures confirm an incoming slowdown, with leading indicators signaling cracks in consumer spending and business activity. The UK economy is flatlining, with only 0.2% economic growth in the last six months, and faces growing headwinds as higher interest rates impact GDP.