Bbc news report
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Breaking News
UK Economy Grows at Slowest Pace in Five Years
The UK economy has grown at its slowest pace in five years, according to official figures released today. The Office for National Statistics (ONS) said that the economy expanded by just 0.1% in the three months to June, down from 0.3% in the previous quarter.
The news is a blow to the government, which had been hoping for a stronger recovery from the pandemic. The ONS said that the slowdown was driven by a decline in manufacturing output, as well as a decrease in construction and services.
The Chancellor, Rishi Sunak, said that the government would take the figures "very seriously" and would work to support businesses and individuals affected by the slowdown.
Reaction
The news has been met with concern from business leaders and economists, who warn that the slowdown could have long-term consequences for the economy.
"This is a wake-up call for the government," said Carolyn Fairbairn, Director-General of the Confederation of British Industry. "We need to see a more targeted approach to supporting businesses and individuals, rather than just relying on general economic stimulus."
Analysis
The slowdown is likely to be a major concern for the government as it prepares for the next stage of Brexit negotiations. The UK is due to leave the EU's single market and customs union at the end of the year, and the uncertainty surrounding the transition has already had a significant impact on business investment and consumer confidence.
The ONS figures also highlight the challenges facing the UK's manufacturing sector, which has been hit hard by the decline of traditional industries such as car manufacturing and textiles.
Related Stories
- UK economy grows at slowest pace in five years, says ONS
- Chancellor vows to support businesses and individuals affected by slowdown
- Business leaders warn of long-term consequences of economic slowdown
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