Recession looms as UK economy shrinks 0.5%

The figure was worse than analysts’ early predictions of a 0.2% fall in GDP and London shares spiralled further on the news, with the FTSE100 down over 6% shortly after the announcement by the Office of National Statistics. The figure represents the worst quarterly economic results since 1990 and indicates the severity of the recession Britain is now facing. Manufacturing was the biggest contributor to the slowdown, with output falling by 1% in the third quarter, while business and financial services proved more robust than the general economy, with productivity down 0.4%. Government inc...