UK enters recession after steeper-than-expected fall in GDP

Business

The UK economy has officially entered recession, figures show.

A recession is defined as two consecutive three-month periods where the economy contracts rather than grows.

A major measure of economic growth, gross domestic product (GDP) shrank 0.3% between October and December, the latest Office for National Statistics (ONS) data shows.

It’s a steeper fall than expected by economists who had forecast a 0.1% contraction.

It followed 0.1% of negative economic growth in the three months from July to September.

The data, however, is just an estimate and is subject to revision.

Figures are routinely revised as more information becomes available.

More on Uk Economy

Consumer spending power has been eroded by the cost of living crisis with high inflation and expensive energy bills eating into disposable income.

Stormy weather also has kept shoppers at home and limited production output.

Rainfall was far above average levels for the final three months of 2023 with higher wind speeds affecting numerous sectors of the economy including construction and retail sales.

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