The British economy contracted by 0.6% between July and September, according to Office of National Statistics (ONS) figures published today. This is a faster rate than estimated, with previous figures predicting a contraction of 0.5%.
The ONS did not revise its figures for the previous quarter; it says there was growth of 0% during that period.
By most definitions, two consecutive quarters of negative growth signifies a recession. As such, the ONS figures are being closely watched.
The figures also highlight the potential for further job losses next year, as productivity per worker fell by 0.2% when compared to the same quarter in 2007. This signifies that the economy is contracting at a quicker rate than employers are making staff redundant.
The gloom of contraction is particularly acutely felt in the manufacturing sector, where output fell by 1.4% between July and September. This contraction contributed to the widening current account deficit, which sat at £7.7bn for the same period.
