The British economy shrank by 0.2% in the last quarter, official data showed on Friday, leaving the UK on the brink of recession.
According to the latest estimates from the Office for National Statistics, GDP fell by 0.2% in the three months to September end, compared to a rise of 0.2% in the second quarter.
Production output fell by 1.5% in July-September, the fifth consecutive quarter of contraction. Manufacturing output tumbled 2.3%.
In September, GDP fell by 0.6%. That compares to a fall of 0.1% in August, revised upwards from an earlier estimate for a 0.3% contraction.
The bank holiday for the state funeral of Queen Elizabeth II, when many businesses closed, weighed heavily on September’s print.
Responding to the data, chancellor Jeremy Hunt – who next week will unveil the government’s latest budget – said: “I am under no illusion that there is a tough road ahead, one which will require extremely difficult decisions to restore confidence and economic stability.”
