The UK economy shrank in the third quarter, marking the latest sign that Britain is heading into a recession.
GDP fell 0.2pc in the three months to the end of September, according to the Office for National Statistics.
That was down from a 0.2pc expansion in the previous three months, but not as severe as the 0.5pc drop predicted by economists.
The numbers reflect the deteriorating economic outlook as surging inflation and rising interest rates eat away at household finances, as well as the impact of an extra Bank Holiday due to the Queen’s death.
But they come before the rise in energy bills in October, as well as the market turmoil unleashed by Liz Truss’s tax-cutting mini-Budget, suggesting that the decline in the fourth quarter could be even more severe.
Chancellor Jeremy Hunt said: “I am under no illusion that there is a tough road ahead – one which will require extremely difficult decisions to restore confidence and economic stability.
“But to achieve long-term, sustainable growth, we need to grip inflation, balance the books and get debt falling. There is no other way.”
Many economists believe Britain is already in recession, which is technically defined as two consecutive quarters of contraction.
Read the latest updates below.
The UK economy shrank in the third quarter, marking the latest sign that Britain is heading into a recession.
GDP fell 0.2pc in the three months to the end of September, according to the Office for National Statistics.
That was down from a 0.2pc expansion in the previous three months, but not as severe as the 0.5pc drop predicted by economists.
The numbers reflect the deteriorating economic outlook as surging inflation and rising interest rates eat away at household finances, as well as the impact of an extra Bank Holiday due to the Queen’s death.
But they come before the rise in energy bills in October, as well as the market turmoil unleashed by Liz Truss’s tax-cutting mini-Budget, suggesting that the decline in the fourth quarter could be even more severe.
Chancellor Jeremy Hunt said: “I am under no illusion that there is a tough road ahead – one which will require extremely difficult decisions to restore confidence and economic stability.
“But to achieve long-term, sustainable growth, we need to grip inflation, balance the books and get debt falling. There is no other way.”
Many economists believe Britain is already in recession, which is technically defined as two consecutive quarters of contraction.
Read the latest updates below.
