UK economy shrinks by 0.2% in Q3 as recession fears bubble

'Toxic cocktail' of inflation, rate hikes and government instability

clock • 2 min read

The UK economy shrank by 0.2% in the third quarter of the year, the latest figures by the Office for National Statistics (ONS) show.

GDP fell over the quarter, following a 0.2% rise between April and June. In September alone, the ONS figures showed the economy contracted by 0.6%. Growth was affected by the bank holiday for the State Funeral of Queen Elizabeth II, where some businesses closed or operated differently on this day, the ONS explained. Although the quarterly figure came below economists' expectations, it still shows the UK economy is weakening amid rising interest rates and the cost-of-living crisis. ONS director of economic statistics Darren Morgan said: "The quarterly fall was driven by manufacturin...

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