The UK economy contracted by 0.1% between July and September this year, according to revised figures released by the Office for National Statistics (ONS). This comes after previous estimates had suggested that there was no growth during this period. The figures have raised concerns that the UK could be heading towards a recession. The last recession occurred in 2020 following the impact of the coronavirus pandemic. Economists had initially expected 0% growth in the third quarter.
Economy Contracts, Fears of Recession Loom
The new revised figures from the ONS show that the UK economy shrank in the third quarter of the year. GDP, which measures the value of goods and services produced in the country, fell by 0.1% instead of remaining flat. This has sparked fears of a recession, as a country is considered to be in a recession after two consecutive three-month periods of economic contraction. The UK economy had shown no growth between April and June this year, revised down from an estimated increase of 0.2%.
Factors Contributing to Contraction
The ONS attributed the contraction in the third quarter to a 0.2% fall in the services sector. However, this was partly offset by a 0.4% increase in the construction industry and a 0.1% increase in the production sector.
Impact on Finances and What You Can Do
The latest figures are bad news for households, as a healthy economy is one that is growing and not in recession. During a recession, jobs may be lost, wages may stall, and businesses may struggle or go bust. To protect your finances, consider creating an emergency savings pot, shopping around for better deals, making a budget, and seeking debt advice if needed. You should also check what benefits you are eligible for and explore emergency funding options available through local councils.
Did you miss our previous article…
https://hellofaread.com/money/over-2-million-awarded-to-under-threat-pubs-in-boost-for-save-our-sups-campaign/
