British economic output has been slower than earlier predicted at 0.5%, reports the Office for National Statistics. A preliminary ONS has revealed the domestic product growth of 0.6%
Compared with the 2023 second quarter statistics of 0.7%, the growth in 2024 Q2 isn’t as the predicted 0.9%, reports ONS. Sterling was little changed against the U.S. dollar after the figures were released.
Liz McKeown, director of economic statistics for the ONS, said: “Today’s updated GDP figures for 2023 and 2024 include new annual survey data, VAT returns, and updated information about the relative size of each industry for the first time. However, after taking on these improvements, the quarterly growth path across the last 18 months is virtually unchanged. Our latest data show that household savings continue to increase and are now at their highest rate since the Covid-19 lockdowns.”
The latest figures show that households are now saving around 10% of their disposable income, compared to 8.9% at the beginning of the year. This means people are choosing to hold onto more of their money rather than spend it.
On top of this, recent data reveals that the economy has been stagnant, with no growth seen in either June or July.
