UK economy sees first quarterly decline in 16 years

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The UK's economic output contracted by 0.5pc in Q3 according to the ONS, the first quarterly decline recorded since 1992.

The data confirms that the UK is on the edge of recession (as defined by two successive quarters of negative growth). Richard Snook, senior economist at the cebr, said: "Examining the sectoral mix of growth shows that the manufacturing sector is already in recession. The key change highlighted in this release is that the service sector is now contracting as a result of the pressure on UK household finances. This sector has been the engine of UK growth over the past ten years, but the credit crunch is pushing it into recession." He added: "Today's figures will make grim reading for Gord...

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