Confirmation of shrinking economy

News Article - 26 November 2008
Category: Industry

The UK's economy did shrink in the third quarter of the year, the Office for National Statistics (ONS) has confirmed.

GDP fell by 0.5 per cent compared to the second quarter the ONS said, agreeing with the figure it had announced last month, although its level is still 0.4 per cent higher than the third quarter of 2007.

However, this still marked the first time the UK's economy has shrunk since 1992, further fuelling predictions that a recession is on its way.

In terms of specific industries, the production and manufacturing sectors were hardest hit, dropping 1.1 per cent and 1.3 per cent respectively, while construction and the service industries also saw falls of 0.7 per cent and 0.4 per cent respectively.

Household spending also recorded a loss of 0.2 per cent, its biggest drop since 1995.

The government announced a series of measures in its pre-Budget report on Monday in an attempt to make the expected recession as short as possible.

---

More industry news

• Banks defend lack of lending with new taskforce
• Fallout begins from public spending cuts
• Only 4% of staff would approach manager with health concerns
• CFOs in dark about carbon management spend
• UK car production falls
• New CRC standards will benefit top performers
• Employee engagement at ‘all time low’
• Finance leaders back green reporting standards push
• UK worker productivity linked to performance bonuses

Back to news home page »