Recession looms as UK economy shrinks in third quarter

”Recession

Figures from the Office for National Statistics have revealed that the UK economy contracted faster between the third quarter of the year than originally thought.

Previous estimates showed that there had been a contraction of 0.5%, however the figure was actually 0.6% during the July and September period.

The previous quarter was left unrevised at a figure of 0% growth. The figures are being closely monitored as a country is considered to be in recession when it experiences two consecutive quarters of negative growth.

However, the figures will indicate the UK economy is flirting with recession as it is the first quarter since April to June 1992 in which UK economic activity has contracted.

Meanwhile, the service sector was hit badly in the July to September period, contracting by 0.5%, having expanded by 0.2% in the previous quarter.

Furthermore, in the manufacturing sector, production shrank by 1.4% in the period.

The October to December figures will be published in the new year.

In related news, figures today released by the British Bankers’ Association show that UK mortgage lending by the major banks has fallen significantly, with approvals for house purchases down 60% on year.

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