Kevin Brown, savings specialist at Scottish Friendly, comments on the latest ONS GDP figures

UK gross domestic product (GDP) is estimated to have increased by 0.1% in Quarter 3 (July to Sept) 2024, following growth of 0.5% in Quarter 2 (Apr to June) 2024.

Here’s what our Savings Specialist, Kevin Brown, had to say:

“This is modestly positive news although the figures reflect how the economy was doing before the Budget announcements at the end of October. The big question now is whether this growth is still sustainable.

“Rate setters will be confident that cutting rates is still the right move with inflation tamed, and the labour market showing some, admittedly small, signs of loosening. Ongoing rate cuts will make debt costs easier to bear for families and businesses alike.

“Now more than ever households need to be setting aside, if possible, rainy-day funds to cover any unexpected costs, or even to prepare for issues such as job losses. Those on lower incomes should consider schemes such as Help to Save which was extended in the Budget.

“Beyond that, with rates falling, anyone saving for the long term should consider setting money aside to invest as savings account rates nosedive.”