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UK at risk of recession after economy shrinks in third quarter

The UK could be heading towards a mild recession after figures showed economic growth fell in the third quarter.

The Office for National Statistics (ONS) said UK gross domestic product fell by 0.1% between July and September, revised down from a first estimate of no growth, the Office for National Statistics (ONS) said.

GDP is estimated to have fallen by 0.1% in Quarter 3 (July to Sept) 2023, revised down from the previous estimate of no growth.

Meanwhile GDP is now estimated to have shown no growth in Q2, revised down from the previous estimate of +0.2% growth.

➡️ https://t.co/KjTIdncntf pic.twitter.com/xb7H0dRZKD

— Office for National Statistics (ONS) (@ONS) December 22, 2023

Growth for the second quarter of the year was also revsied down no growth from a previously estimated increase of 0.2%, while growth in the first quarter was unrevised.

The ONS said there was a 0.2% fall in the services sector in the third quarter, which offset a 0.4% increase in construction output and a 0.1% increase in the production sector.

ONS director of Economic Statistics Darren Morgan said: "The broader picture, though, remains one of an economy that has been little changed over the last year."

“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 & design and telecommunications all performing a little worse than we initially thought.”

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