News / Economy

Signs show UK economy slowing

Monday, 05 October 2015 3:43 PM [ Last Update: Tuesday, 06 October 2015 1:11 PM ]

Signs are growing that the British economic recovery has lost steam mainly due to lower consumer spending and weaker manufacturing.

Britain's recovery appears to be losing steam as worries about the world economy grow, consumers curb spending and manufacturing weakness spreads to the dominant services sector.

Financial data company Markit says its findings show that the British economy is growing at a rate of just 0.3 percent, its weakest in nearly three years. Experts say this may make the Bank of England reluctant to raise interest rates as it meets on Thursday.

Britain's economy was the fastest-growing in the G7 group of major advanced economies in 2013 and 2014, and recorded growth of 0.7 percent in the three months to June, Reuters reported.

But Markit said its figures suggested gross domestic product (GDP) growth had slowed to 0.5 percent in the third quarter - around Britain's long-run average - and could be slower in the fourth quarter.

Finance Minister George Osborne said at the annual conference of the Conservative Party on Monday that he saw "a lot of economic risk out there" and Britain should be "prepared for whatever the world throws at us".

Markit said weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular. It added that there are also signs that consumers have become more cautious and are pulling back on their leisure spending, Reuters added.

Last month the BoE's chief economist Andy Haldane said he feared the world could be on the brink of a new stage of financial crisis, this time centered around heavily indebted emerging markets.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.ir