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According to the most recent information from the Office for National Statistics (ONS), economic growth for the UK was at a rate of 0.5 per cent for the period from July to September.

The majority of financial analysts had predicted that growth for the quarter would be 0.6 per cent, and the figure also means that growth has declined by 0.2 per cent from the second quarter of the year.

Partly due to economic problems across the world, including the market in China, the fall in growth rate is also due to a major decline in the construction sector, which fell by 2.2 per cent and a 0.3 per cent fall in manufacturing output.

 

Chris Williamson, chief economist at research firm Markit, said: “The slowdown is being led by the manufacturing sector, which is seeing a renewed recession as output has now fallen for three consecutive quarters, suffering a 0.3 per cent decline in the three months to September.

“Manufacturing output has so far fallen 0.9 per cent this year.

“Producers are struggling as weak demand in many overseas markets, notably China and other emerging nations, is being exacerbated by the appreciation of sterling.”

However, in more positive news, the UK’s reliable service sector grew by 0.7 per cent, and even though figures for construction were low the ONS said that wet weather in August was partly to blame.

Following the news and worldwide market conditions, many economic forecasts now state that the Bank of England will only raise interest rates from the second quarter of 2016 and no sooner.

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