“GDP growth slows despite a pick-up in demand” says Yael Selfin, Chief Economist at KPMG UK.
“Worries about the effect of Budget measures seem to have had a limited effect on consumers and businesses, many of whom have chosen not to ‘wait-and-see’ what the announced measures could bring before committing to spending.
“Figures for the next quarter will shed more light on how the private sector digests the measures announced in the Budget, including higher taxes. Further geopolitical uncertainty may also weight on business investment in the coming months.
“Despite the external headwinds, we anticipate a pick-up in activity in the new year as higher public spending and investment announced in the Budget feed through to stronger GDP growth of around 1.5% in 2025”
