The revised figure means the UK economy has contracted in the third quarter of 2023, raising the risk of a recession, ITV political correspondent Dan Rivers reports.
United kingdom Economy The economy contracted more than expected in the third quarter of 2023, increasing the risk of the country falling into recession, according to official figures.
GDP fell by a revised 0.1% against initially estimated zero growth, the Office for National Statistics (ONS) said.
The rate also stabilized during the second quarter of the year, after previous estimates showed growth of 0.2%, painting a bleak picture for the economy.
Industries including film production, engineering, design and communications showed a weaker performance during the third quarter than the ONS initially thought.
The revised figures come after the Office for National Statistics said the economy contracted by 0.3% during October.
If GDP declines between October and December, it puts the economy at risk of falling into a recession, which can be defined as two consecutive quarters of negative growth.
In better economic news, retail sales were stronger than expected last month as shoppers snapped up Black Friday deals and purchased Christmas gifts.
Home goods stores were among the strongest performers, with growth of 3.5%, amid strong demand for furniture.
Meanwhile, food stores saw volumes increase by 0.8% during the month.
The Office for National Statistics (ONS) revealed that retail sales volume rose by 1.3% in November.
This came ahead of economists’ expectations who expected growth of 0.4% for the month.
The Office for National Statistics also revised its data for October upwards, reporting that there was no growth in retail sales after previously forecasting a 0.3% decline.
Darren Morgan, director of economic statistics at the ONS, said: “The latest data from the regular monthly business survey and VAT returns show that the economy has performed slightly lower in the last two quarters than our initial estimates.
“However, the broader picture remains one of an economy that has not changed much over the past year.”
In response to downward revisions to UK economic growth data, Chancellor Jeremy Hunt said: “The medium-term outlook for the UK economy is much more optimistic than these figures suggest.”
“We saw inflation fall again this week, and the Office for Budget Responsibility expects the measures in the Autumn Statement, including the biggest business tax cut in modern British history and tax cuts for 29 million workers, to deliver an economic recovery.” “The biggest boost to potential growth ever.”
The Labor Party said the prime minister had “failed to develop the economy.”
Responding to the latest GDP figures, Shadow Chancellor Rachel Reeves said: “Rishi Sunak is a Prime Minister whose legacy is failure.
“It has failed to beat Liz Truss, it has failed to reduce waiting lists, it has failed to stop boats and now it has failed to grow the economy.
“Thirteen years of economic failure under the Conservatives have left workers worse off with rising bills, rising mortgages and rising prices in shops.
“It’s time for change. Labour, led by Keir Starmer, has a long-term plan to grow the economy and improve conditions for working people.
Want a quick, expert briefing on the most important news? Listen to our latest podcast to find out what you need to know…