UK recession risk grows as new figures suggest economy has flatlined since March
According to the Office for National Statistics (ONS) the UK economy contracted by 0.1 per cent in the three months to September, increasing the chances of a recession at the end of 2023.
The ONS published its updated GDP figures for the third quarter this morning. It had previously said the economy had flatlined during the quarter.
It comes as the latest figures showed the economy shrank by 0.3 per cent in October, suggesting the economy could have tipped into a recession in the second half of 2023 – a recession is defined as two-quarters of economic contraction.
The ONS has also published its updated growth figures for the second quarter of the year this morning. The statistical agency said it had revised down GDP growth for the second quarter from the previously stated 0.2 per cent to zero per cent, suggesting the economy hasn’t grown since March.
Based on the updated numbers, the UK economy grew by just 0.3 per cent over the year to the end of September.
Separate figures out today also showed retail sales grew 1.3 per cent month-on-month in November.
ONS director of economic statistics Darren Morgan said he now estimates “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 & design and telecommunications all performing a little worse than we initially thought.”
More to follow