London, 22 December 2023
UK: Recession Looming as British Economy Contracted by 0.1% in Q3 2023
In Q3 2023, the British economy contracted by 0.1% quarter over quarter, against first projections of a flat reading. The information and communications industry, which includes computer programming and telecommunications, had a 1.4% loss, driving the services sector's 0.2% decline—a worse result than the 0.1% reduction in the initial estimate.
However, changes were adjusted higher for both construction (0.4% vs.0.1%) and production (0.1% vs. no growth). In terms of spending, household spending fell more than anticipated (-0.5% vs. -0.4%), with social protection, jewellery, watches, clocks, and dining establishments being the biggest drags.
Additionally, government consumption was revised higher (0.8% vs -0.5%) while business investment fell, but less than first anticipated (-3.2% vs -4.2%), primarily in transportation equipment.
The revised figures for imports (-1% vs -0.8%) and exports (-0.6% vs -0.5%) were also lower. A recession in the UK was hinted at when Q2 GDP growth was revised downward to zero from an initial estimate of 0.2% expansion.
(Source: Trading Economics // Edited by, The Decision Maker - Finance editors)