U.K. GDP fell 0.2% in Q3 as energy, cost-of-living crises bit

By Geoffrey Smith

Investing.com — The U.K. economy shrank for the first time in six quarters in the three months through September, as Europe’s energy crisis drove inflation to its highest in 40 years.

fell 0.2% from the second quarter, a slightly better outcome than the 0.5% decline feared, thanks to a stronger-than-expected performance by industry in September. rose 0.2% and was flat on the month, in contrast to declines forecast for both. That wasn’t enough to stop GDP contracting 0.6% in September, however, as the period of official mouring for Queen Elizabeth reduced activity.

Even so, the figures put the country on track for what the Bank of England has warned could be the longest recession in decades, as roaring and aggressive increases hurt both consumer and business sentiment.

Overall in the third quarter, service sector output was flat, driven by a fall in consumer-facing services, while the production sector contracted by 1.5% in Quarter, with all 13 sub-sectors of the manufacturing sector recording declines in output.

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