LONDON — Britain’s Treasury chief Rachel Reeves said Friday she was “not happy” with official figures showing Britain’s economy’s recovery from recession slowed sharply in the third quarter of the year, while the country’s top central banker and -expressed concern about the economic situation. damage caused by Britain’s exit from the European Union.

The Office for National Statistics said growth between July and September was just 0.1%. This was lower than the 0.5% recorded in the previous three-month period and below market expectations of 0.2%.

The statistics agency said overall output in September fell, a development that fueled accusations by critics of the new Labor government that its pessimism dragged down the economy in its first weeks in office. Conservative Treasury spokesman Mel Stride said the deterioration in business and consumer confidence was a direct result of the government’s “retrenchment of the economy”.

Upon coming to power in July for the first time in 14 years, the government described its economic legacy from the former Conservative administration as the bleakest in decades, requiring urgent action to fix public finances.

Reeves used the budget to sharply raise taxes, mainly on business, as well as increase spending on public services, such as the state-run National Health Service, and borrow for investment.

“Improving economic growth is at the heart of everything I’m trying to achieve, which is why I’m not happy with these numbers,” Reeves said following Friday’s numbers.

Prime Minister Keir Starmer has said boosting economic growth is his government’s No.1 priority over the next five years. Since the global financial crisis of 2008-2009, the UK economy has underperformed year-on-year and is actually slipping into a modest recession in 2023.

The Resolution Foundation said the UK economy had been a “roller coaster” over the past year and its medium-term performance was “stagnant and stagnant”.

Following the slowdown in the third quarter, the think tank said the UK had slipped below the US at the top of this year’s growth ranking of the group of seven leading industrial economies.

“All of this serves to highlight that the government’s task of renewing strong economic growth is both extremely difficult and absolutely necessary,” said Simon Pittaway, the think tank’s chief economist.

One factor holding back the economy, many economists say, is Brexit, when Britain left the EU in 2020, making trade more difficult. Although the post-Brexit trade deal between the two sides has ensured that there will be no customs duties on goods, life is tough for exporters.

As part of Brexit, the UK also left the frictionless single market and customs union, meaning firms must submit forms and customs declarations for the first time in years, among other hurdles.

On Thursday night, Bank of England Governor Andrew Bailey said he needed to “underline the consequences” of Brexit, even though as an official he had no position on Brexit.

“The changing trade relationship with the EU has weighed on the level of potential supply,” he said. “It underlines why we need to be careful and welcome opportunities to restore relations, while respecting the decision of the British people.”

Starmer said he wanted to “reset” the relationship with the EU, but ruled out Britain joining the single market or customs union or returning free movement of people.

While ruling out those options does not leave the British government much leeway, Starmer has promised to reduce some of the post-Brexit barriers to the movement of people and goods that have undermined ties between Britain and the bloc.

A woman photographs a festive shop window on Oxford Street in London, Friday, Nov. 15, 2024. (AP Photo/Kirsty Wigglesworth)

Chancellor of the Exchequer Rachel Reeves delivers the first Mansion House speech on financial services in the City of London during the Financial and Professional Services Dinner in the Egyptian Room of the Mansion House on Thursday, November 14, 2024. (Isabel Infantes/PA) via AP)

Pedestrians walk past a closing sign on a souvenir shop on Oxford Street in London, Friday, Nov. 15, 2024. (AP Photo/Kirsty Wigglesworth)

A man sleeps with his dog outside a festive shop window on Oxford Street in London, Friday, Nov. 15, 2024. (AP Photo/Kirsty Wigglesworth)

Chancellor of the Exchequer Rachel Reeves delivers the first Mansion House speech on financial services in the City of London during the Financial and Professional Services Dinner in the Egyptian Room of the Mansion House on Thursday, November 14, 2024. (Isabel Infantes/PA) via AP)

Shoppers walk past a festive window display on London’s Oxford Street. Friday, November 15, 2024. (AP Photo/Kirsty Wigglesworth)