Economy English contracted by 0.2% in the third quarter of 2022. This condition is believed to be an early sign that the UK will be in a protracted recession.
Early forecasts suggest that the economy performed better than expected in the third quarter, despite the downturn. According to financial infrastructure data provider Refinitiv, the UK economy will contract by 0.5%.
However, the actual contraction does not yet represent a technical recession, characterized by negative economic growth for two consecutive quarters.
“In terms of production, there was a slowdown in the quarter for services, manufacturing and construction, the services sector slowed production stable in the quarter driven by a decline in consumer-facing services, “the Office for National Statistics (ONS) report said. CNBCFriday (11/11/2022).
In the third quarter of 2022, however, the production sector fell by 1.5%. This includes declines in all 13 manufacturing subsectors.
The Bank of England predicted Britain’s longest recession last week. The decline in the third quarter is even expected to last until 2024, bringing the number of unemployed to 6.5%.
The country is facing a historic cost-of-living crisis driven by pressure on real incomes due to soaring energy and commodity prices. The central bank recently imposed its largest interest rate hike since 1989 as politicians try to tame double-digit inflation.
The ONS said the quarterly GDP rate in the third quarter was 0.4% below pre-Covid levels in the last quarter of 2019. Meanwhile, the September figure, where UK GDP fell by 0.6%, was influenced by the holidays related to the state funeral of Queen Elizabeth II.
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