The U.K. economy reportedly declined by more than that expected in the third quarter of this year.
According to the Office for National Statistics, the nation's gross domestic product (GDP), which measures the total value of all goods and services that are produced there, slumped by 0.3% from July to September as opposed to the initially projected 0.2% decline.
Moreover, the U.K. can potentially face a recession if the economy fell again in the fourth quarter of this year.
The construction and manufacturing industries performed worse than that expected.
Apparently, manufacturing output fell 2.8%, surpassing the initially announced 2.3% contraction, while construction operation slumped 0.2% instead of growing 0.6% in November.
Electricity production was also outlined as notably weaker by the ONS's director of economic statistics.
Household incomes fell further, though at a slower rate than in the first two quarters of 2022, while the household spending tumbled for the first time since the last spring lockdown of 2021.
The disposable households’ income dropped by 0.5% in the third quarter, marking the fourth consecutive decline.
Household spending dropped by an updated 1.1% in the third quarter, due to reductions in tourism, transportation, household products, and services, as well as food and beverage spending.
As per sources, many think that the U.K. economy has already entered a recession. The Confederation of British Industry (CBI) predicts that the economy will contract 0.4% in 2023.
However, the first month of Q4 in 2022 showed positive growth. According to ONS data, the growth recorded in October was 0.5%. It was a better performance than economic experts had estimated, and it was described by the return of regular working days instead of any real increase in output.
The economy is still anticipated to enter a recession by the year end, with the quarter as a whole anticipated to have witnessed negative growth.
Source credit: https://news.sky.com/story/uk-economy-shrinks-by-more-than-first-thought-in-the-third-quarter-of-this-year-12772950