According to a statement from the Office for National Statistics (ONS), production decreased by 0.2 percent between July and September, after a slight increase in the second quarter.
Last Monday, the Bank of England announced that the UK economy was in recession and expected to decline during the current third quarter. The BoE also issued a warning that the British economy would not recover until the middle of 2024.
Figures released on Friday come as new Prime Minister Rishi Sunak’s government announces a new budget on Thursday in an effort to bring much-needed political and economic stability to Britain.
With UK inflation at a four-decade high of around 10%, the UK is facing a recession besides the problem of survival.
As workers in the public and commercial sectors demand wage increases to match the inflation and wage growth gap experienced in recent years, the country is at risk of strike action.
“The sharp rise in energy and other consumer prices has contributed to the pressure on domestic finances, which is expected to push the UK economy into recession from the third quarter of this year,” said Yale Selfin, chief economist at KPMG UK. After Friday’s figures.
The ONS said the contraction in the third quarter was partly due to a national public holiday to mark the funeral of Queen Elizabeth II, resulting in the closure of a large number of businesses.