The UK economy will grow two per cent this year after growth slowed

 
Emma Haslett
Follow Emma
Revellers hide from rain under Union Jac
UK GDP growth stalled in October (Source: Getty)

Economic growth in the UK stalled slightly in the three months to the end of October, falling from 0.5 per cent in the previous three months to 0.4 per cent.

The closely-watched GDP estimate by the National Institute of Economic and Social Research (Niesr) said although consumer spending is robust at the moment, it expects it to dip in the coming months as prices begin to rise.

That will cause GDP to rise two per cent this year, falling to 1.4 per cent next year.

Read more: A "hard Brexit" could undermine the very things driving GDP growth

Meanwhile, inflation will hit 3.8 per cent by the end of next year

“Robust consumer spending growth continues to support the economy," said Oriol Carreras, research fellow at NIESR.

"Looking ahead, this contribution from consumers is expected to wane over the course of next year due to a substantial rise in the rate of inflation.”

The figure is slightly lower than the 0.5 per cent suggested by the Office for National Statistics (ONS) a fortnight ago, which was boosted by strong growth in the film, retail and computer programming sector.

Figures published this morning by the Office for National Statistics showed a surprise dip in production in the UK's industrial sector - the figure fell 0.4 per cent between August and September, and 0.5 per cent on a quarterly basis.

Related articles