Revised figures showing the UK economy stalled in the quarter to September have raised eyebrows over the risk of a recession ahead.
According to the ONS, gross domestic product (GDP) failed to grow over the quarter, against an initial estimate for a 0.1% uptick.
Separate figures earlier this month showed the economy unexpectedly contracted in October, leaving fears of negative growth over the final quarter of the year.
The drop has raised concerns that the UK could be on course towards the two consecutive quarters of negative economic growth that would leave it in recession.
A survey by the Confederation of British Industry (CBI), also published on Monday, showed private sector firms were expecting activity to contract over the three months to March.
Expectations over the three months ahead were at their lowest in two years, with pessimism around output across all sub-sectors being recorded.
“The economy is headed for the worst of all worlds,” CBI deputy chief economist Alpesh Paleja said, “firms expect to reduce both output and hiring, and price growth expectations are getting firmer”.
“Businesses continue to cite the impact of measures announced in the Budget - particularly the rise in employer national insurance contributions - exacerbating an already tepid demand environment.”
Analysts had highlighted bright spots in Monday’s GDP data though, with Pantheon Macro pointing to growing investment and firm consumer spending.
“Looking ahead, we expect GDP growth to rebound to 0.2% quarter-to-quarter in the fourth quarter,” Pantheon said.
“And, we expect growth next year to average a healthy 0.4% quarter-to-quarter in 2025.”