The monthly and quarterly GDP data has been released by the ONS.

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said:

“Today’s GDP data suggests that growth has lost some momentum, only increasing by 0.1% in Q3 and falling by 0.1% in September due to declines and stagnation in manufacturing and services outputs.

“It is likely that business confidence may have taken a knock due to taxation concerns and geopolitical uncertainty. In our Quarterly Economic Survey for Q3, 55% of businesses in Wales stated that taxation was more of a concern than it had been in the previous quarter.

“While last month’s Budget gave businesses an idea of the government’s plans for long-term growth, SMEs face challenges in the short-term as they have to factor in increases in employer National Insurance contributions, the National Minimum Wage and National Living Wage. Action will need be taken to minimise the combined impact of the tax and policy changes on business so that growth can pick up pace again in the months ahead.”

David Bharier, Head of Research at the British Chambers of Commerce, said:

“Today’s preliminary GDP data for Q3 at 0.1% suggests economic growth has lost some momentum in the second half of 2024.

“Our latest research has shown business confidence falling back amid a spike in anxiety over tax and employment policy. Meanwhile geopolitical uncertainty continues to make international trading conditions challenging.

“Last month’s Budget gave UK businesses some welcome indication of the Government’s long-term framework to boost growth. However, our early feedback from businesses suggest many will not be able to stomach the raft of new costs.

“SMEs now face making tough decisions to deal with the increase in National Insurance Contributions, the rise in the National Living Wage and the impact of the Employment Rights Bill.

“Sustained economic growth can only come through business. That’s why it’s crucial that we see decisive and inclusive action at pace from the Government to unlock investment. A lot is riding on the detail of the industrial and trade strategies in the months ahead.”