The UK’s economy shrunk by 0.2% between July and September, in what some experts say could be the start of the longest recession since record began.
The Office for National Statistics (ONS) said that gross domestic product (GDP) had fallen by 0.6% in September, in part due to the Queen’s funeral.
It could be the beginning of a recession – which is defined as two quarters of shrinking GDP in a row.
The reading comes just a week after the Bank of England published a caveated forecast that the UK might be headed for an eight-quarter recession – the longest consecutive recession since reliable records began in the 1920s.
However, the Bank itself cautioned that this would only happen if it raises interest rates to around 5.2% – which the market was expecting at the time.
The Bank itself said it did not expect rates to reach such a high level, which would imply that the recession could be less drawn out.
