The UK economy barely expanded in the third quarter as the dominant services sector lost momentum, underlining the challenge facing the Labour government that has put growth at the centre of its agenda.
The economy grew 0.1 per cent in the quarter, the Office for National Statistics said on Friday, compared with an expansion of 0.5 per cent in the second quarter. The figure was below economists’ expectations of 0.2 per cent.
The services sector, which accounts for about 80 per cent of the economy, expanded 0.1 per cent, overshadowing a 0.8 per cent expansion in the construction sector.
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