The UK economic system contracted by greater than beforehand estimated within the third quarter, whereas households’ disposable revenue continued to fall, in keeping with information revealed on Thursday by the Workplace for Nationwide Statistics.
Output fell 0.3 per cent between the second and third quarter, a bigger contraction than preliminary estimates of 0.2 per cent. The figures present the UK lagging additional behind different superior economies.
“Our revised figures present the economic system carried out barely much less nicely over the past 12 months than we beforehand estimated, with manufacturing and electrical energy era notably weaker,” mentioned Darren Morgan, ONS director of financial statistics.
Within the third quarter, the UK economic system was 0.8 per cent beneath the extent within the last quarter of 2019, earlier than the pandemic. Against this, output within the US, Canada and the eurozone was forward of pre-pandemic ranges in the identical interval.
The ONS additionally confirmed that actual households’ disposable revenue, which is what households have obtainable to spend after taking inflation under consideration, fell 0.5 per cent between the second and third quarter. It was the fourth consecutive fall as wages haven’t stored up with inflation.
“Family incomes continued to fall in actual phrases, albeit at a slower charge than within the earlier two quarters, whereas — taking account of inflation — family spending fell for the primary time for the reason that last Covid-19 lockdown within the spring of 2021,” mentioned Morgan.