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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

Why UK recession may be deeper than two quarters of falling GDP suggest

Shipping containers are unloaded from a cargo ship at the Port of Felixstowe in Suffolk as two people walk a dog on a beach
A recent study by the ONS showed total goods exports in 2023 fell by £15.2bn, or 4.6%, compared with 2022. Photograph: Joe Giddens/PA

As the UK economy struggled for momentum, with households tightening their belts, higher defence spending in the second half of last year was a factor that prevented it from contracting by more than it did.

The second estimate by the Office for National Statistics of national income, as measured by gross domestic product last year, showed that extra cash for the military, and an increase in government spending more generally, masked a deep and persistent recession in manufacturing and downturns in several other sectors of the economy.

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