UK economy shrinks in third quarter

The UK economy shrank in the third quarter for the first time since 1992 and at a faster rate than previously thought, official…

The UK economy shrank in the third quarter for the first time since 1992 and at a faster rate than previously thought, official data showed today.

Final figures from the Office for National Statistics showed gross domestic product fell by 0.6 per cent in the three months to September, revised down from a previous estimate for a 0.5 per cent fall.

On the year, the economy grew 0.3 per cent, unrevised from the previous estimate. The figures are likely to reinforce expectations that Britain is heading into a recession and interest rates have further to fall.

The ONS said the downward revision was due to bigger than previously estimated falls in manufacturing output and weaker services output.

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Separately, the ONS released data on the balance of payments. The current account deficit widened to £7.723 billion from an upwardly revised £6.424 billion deficit.