Preliminary gross domestic product (GDP) contracted 0.3% in the fourth quarter of 2023 following a 0.1% fall in the previous quarter, putting the UK into a technical recession.
The economy witnessed broad-based decline in output in the three months to December, with services falling -0.2%, industrial production -1% and construction -1.3%.
In expenditure terms, there was a fall in net trade, household spending and government consumption, partially offset by an increase in gross capital formation.
Commenting on the GDP figures, ONS director of economic statistics Liz McKeown said: “Our initial estimate shows the UK economy contracted in the fourth quarter of 2023. While it has now shrunk for two consecutive quarters, across 2023 as a whole the economy has been broadly flat.
“All the main sectors fell on the quarter, with manufacturing, construction and wholesale being the biggest drags on growth, partially offset by increases in hotels and rentals of vehicles and machinery.”
Health and education performed less well than initially estimated in both October and November, McKeown added.
“It’s now official, we’re in recession. And the fall in growth at the end of last year was worse than expected," said Ed Monk, associate director at Fidelity International.
“There’s a fair chance the economy will turn positive again in the months ahead but that’s no real cause for celebration now. This news will put extra strain on households, businesses and their workers and the public finances.
"Falling growth means demand is ebbing out of the economy. That puts downward pressure on inflation but there’s little sign the Bank of England will cut rates yet."
Aside from a brief Covid-era moment, the last time the UK entered a resession was in 2008 during the great financial crisis.