UK Economy Shrinks Between August And October

December 12, 2022

The UK economy shrank between August and October as the country heads into an expected recession.

The economy contracted by 0.3% during the three months as soaring prices hit businesses and households.

A country is in recession when its economy shrinks for two three-month periods in a row,

Over the three months, economic activity in the UK slowed across all the main sectors including production, construction and services.

The UK is widely expected to be in recession by the end of this year. The Bank of England recently said the UK is facing its longest recession since records began.

There was a brief respite in October alone when the economy grew by 0.5%, according to the Office for National Statistics (ONS), compared to September when output fell because of an additional bank holiday for Queen Elizabeth's state funeral.

It meant that some businesses closed or had shorter opening hours.

But Chancellor Jeremy Hunt said: "While today's figures show some growth, I want to be honest that there is a tough road ahead. Like the rest of Europe, we are not immune from the aftershocks of Covid-19, Putin's war and high global gas prices."

Labour's shadow chancellor Rachel Reeves said the figures "underline the failure of this Tory government to grow our economy, leaving us lagging behind on the global stage".

Darren Morgan, director of economic statistics at the ONS, said that some companies had said that strike action had affected their business.

"We speak to about 40,000 businesses every fortnight and one in eight of them tell us they were affected by industrial action in October," Mr Morgan told the BBC's Today programme.

"They told us the most common impacts were they were not able to get the necessary goods or services and were unable to operate fully."

Source: BBC
Image: Getty Images

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