Jeremy Hunt is upbeat despite official figures suggesting the economy is falling into recession.
Revised figures show gross domestic product shrank by 0.1% for July to September after previous estimates indicated growth had flatlined, the Office for National Statistics found.
A contraction over autumn would mean the country is technically in recession because of two consecutive quarters of negative growth.
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The ONS also found the UK flatlined in spring after estimating a 0.2% rise.
But the Chancellor said the wider picture is less bleak.
Don't miss... Chancellor optimistic despite UK economic contraction and recession concerns
He said: “The medium-term outlook for the UK economy is far more optimistic than these numbers suggest. We’ve seen inflation fall again this week, and the OBR expects the measures in the Autumn Statement, including the largest business tax cut in modern British history and tax cuts for 29 million working people, will deliver the largest boost to potential growth on record.”
But several industries showed a weaker performance during the third quarter than initially thought.
Darren Morgan, ONS economic statistics boss, said: “The latest data from both our regular monthly business survey and VAT returns show the economy performed slightly less well in the last two quarters than our initial estimates.
“The latest VAT data, which takes a little time to receive and process means we now estimate the economy showed no growth in the second quarter, with weaker performances from smaller businesses, particularly those in both hospitality and IT than first shown.
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“We also now estimate the economy contracted slightly in the third quarter, when we previously reported no growth, with later returns from our business survey showing film production, engineering and design and telecommunications all performing a little worse than we initially thought.”
Prime Minister Rishi Sunak made growing the economy one of his five pledges in January.
Last month, he met the first of his promises when inflation fell to below half the 11% it was at the start of the year. This week it dropped to 3.9%.
It raised expectations of interest rate cuts next year following 14 consecutive rises since December 2021.
But economists warned the PM it will be tough to grow the economy.
Richard Carter, at Quilter Cheviot, said: “Growth is weakening and interest rates are really beginning to bite, and while a recession has just been avoided to date, there is no guarantee one will be avoided in 2024.”
Martin Beck, at the EY Item Club, expects the fourth quarter “to flatline at best, with a technical recession a serious possibility.”
However he added that “prospects for 2024 are improving” with falling inflation and energy bills.
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Ashley Webb, at Capital Economics, suggested the “mildest of mild recessions started” in the summer with growth “subdued throughout 2024”.
Shadow chancellor Rachel Reeves said the PM “failed to beat Liz Truss, he failed to cut waiting lists, he failed to stop the boats and now he has failed to grow the economy”.
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