UK economy contracted by more than first thought in third quarter

The UK economy contracted by more than first thought between July and September and growth has been weaker than estimated throughout much of the past year in a grim set of official figures as Britain is widely expected to be heading for recession.

The Office for National Statistics (ONS) said gross domestic product (GDP) fell by a revised 0.3 per cent in the third quarter of 2022 against the 0.2 per cent decline initially estimated.

The ONS said the economy also grew less than first estimated throughout the first half of the year, with revisions showing the UK eked out growth of 0.6 per cent in the first quarter and 0.1 per cent in the second quarter.

The ONS has previously said growth stood at 0.7 per cent and 0.2 per cent in those quarters respectively.

In 2021, GDP growth is now shown to be weaker in the third and fourth quarters.

The ONS said the level of GDP is now estimated to be 0.8 per cent below where it was before the pandemic struck, downwardly revised from the previous estimate of 0.4 per cent below.

Darren Morgan, director of economic statistics at the ONS, said: “Our revised figures show the economy performed slightly less well over the last year than we previously estimated, with manufacturing and electricity generation notably weaker.

“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.” - PA