UK GDP growth slows in third quarter

The 0.1% GDP increase is down from a 0.5% growth in the second quarter and a 0.7% growth in the first quarter . It is also below the 0.2% growth expected by economists.

Monthly real GDP is estimated to have fallen by 0.1% in September, driven by declines in manufacturing output and information and communication services. It comes after unrevised growth of 0.2% in August and an unrevised estimate of no growth in July.

In retail, UK retail sales rose 2% in September, followed by a 0.6% increase in October, British Retail Consortium (BRC) and KPMG figures have shown. However, in-store non-food sales over the three months to September decreased 1.5% year on year, against growth of 0.3% in the previous year.

Helen Dickinson, CEO of the BRC, said last month: "As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear. The start of the month also saw a last-minute rush for computers and clothing for the new academic year.

"The coming months are crucial for the economy as retailers enter the 'Golden Quarter'. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited."