UK economy shrank more than first thought in three months to September

Data published by the Office for National Statistics (ONS) has revealed that the UK economy shrank more than previously thought in the three months to September 2022.

23 Dec 2022

Data published by the Office for National Statistics (ONS) has revealed that the UK economy shrank more than previously thought in the three months to September 2022.

The data shows that the economy contracted by 0.3% during this time. Experts had predicted that it would shrink by 0.2%.

Gross Domestic Product (GDP) is currently estimated to be 0.8% below where it was before the coronavirus (COVID-19) pandemic.

'Our revised figures show the economy performed slightly less well over the last year than we previously estimated, with manufacturing notably weaker,' said Darren Morgan, Director of Economic Statistics at the ONS.

'Household incomes continued to fall in real terms, albeit at a slower rate than in the previous two quarters, while – taking account of inflation – household spending fell for the first time since the final COVID-19 lockdown in the spring of 2021.'

Additionally, the Office for Budget Responsibility (OBR) recently warned that the UK is set to experience a year-long recession.

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