UK GDP fell 0.3% in the third quarter, more than the 0.2% first reported.
Household spend fell for the first time since the last Covid lockdown in spring 2021.
UK now at the bottom of the G7 table when it comes to GDP growth.
Danni Hewson, AJ Bell financial analyst,comments on the revised UK GDP figures: “Households struggling to find the cash they need to cover the cost of Christmas won’t really care about these revised GDP figures. They already know they’re having to cut back on the amount the buy because their cash just isn’t going as far as it used to.
“People and businesses are finding ways to curb the amount of energy they use as bills become bombs exploding confidence and undermining livelihoods.
“If there is no cash left in the kitty there’s no option of popping to the pub or nipping out for a slap-up meal you don’t have to cook yourself, and it’s these new behaviours that are marching the UK economy into recession.
“Supply issues might be easing but they’re still causing issues for some manufacturers and price pressures and skills shortages are hammering the construction sector despite healthy order books.
“Whilst this update from the ONS doesn’t really add much to what we already know about the direction of travel, there are a few nuggets that are troubling. Business investment fell by even more than had been thought and is now a whopping 8.1% below pre-Covid levels.
“Investment is the fuel that helps stoke the embers of a cooling economy and with the UK now at the bottom of the table of G7 countries when it comes to growth, it’s clear more needs to be done to inspire confidence that post-Brexit, post-pandemic the UK is worth another look.
“There is clearly a caveat in that the UK did shutter shops and close offices and factories to allow people to take time off to pay their respects to the late Queen. But all in all, it’s hard to find the silver lining in these gathering storm clouds.”