UK economy contracts more than first estimated in Q3
The UK economy contracted more than first estimated in the three months to September as household incomes fell, according to figures released on Thursday by the Office for National Statistics.
GDP shrank 0.3% in the third quarter, versus an initial estimate of a 0.2% contraction. The figures showed that real household incomes fell by 0.5% during the quarter - the fourth consecutive quarter of negative growth.
The revised data also showed that the economy grew 0.6% in the first quarter and 0.1% in the second, down from previous estimates of 0.7% and 0.2% growth, respectively.
The revisions reflect bigger falls in manufacturing and production than previously estimated. It was suggested that this might reflect changes in business and consumer behaviour in response to higher energy prices after the regulator's energy price cap rose in April.
The ONS said business investment declined 2.5% in quarterly terms in Q3, compared with an initial estimate of a 0.5% fall.
ONS director of economic statistics Darren Morgan said: "Our revised figures show the economy performed slightly less well over the last year than we previously estimated, with manufacturing and electricity generation notably weaker.
"Household incomes continued to fall in real terms, albeit at a slower rate than in the previous two quarters, while - taking account of inflation - household spending fell for the first time since the final Covid-19 lockdown in the spring of 2021."