London’s top stock market index was treading water on Monday after revised economic data raised concerns that the UK economy will have flatlined over the entire second half of 2024. Experts said it painted a “dreary economic picture” as the year draws to a close. The FTSE 100 was moving higher during the day but pared back some gains in the afternoon.
At close, it was up 18.11 points, or 0.22%, at 8,102.
72. Revised figures from the Office for National Statistics on Monday morning showed that gross domestic product (GDP) recorded no growth between July and September, having previously estimated a 0.1% increase.
The new reading was partly explained by fresh survey data showing weaker trading across bars and restaurants. Laith Khalaf, head of investment analysis at AJ Bell, said: “This is ‘unfestive’ news for the Chancellor and the Prime Minister, who have promised to get the UK growing again. “Clearly the Government can’t be expected to turn on the taps of the whole economy in its first three months, but the fact GDP has flatlined does outline the scale of the problem.
“Last week the Bank of England said it expected zero growth in the fourth quarter of 2024, again a downgrade from their previous forecast of 0.3%. “If that proves to be correct, it could mean no growth in the whole second half of this year.
That would pretty be close to a technical recession, defined as two quarters of negative economic growth. “All in all it’s a pretty dreary economic pic.