The
UK
economy
entered
recession
in
the
final
quarter
of
last
year,
according
to
data
from
the
Office
for
National
Statistics
on
Thursday.
UK
gross
domestic
product
slumped
0.3%
in
the
three
months
to
December
from
a
quarter
earlier,
underperforming
the
expected
0.1%
fall,
according
to
consensus
cited
by
FXStreet.
The
UK
economy
had
declined
0.1%
quarter-on-quarter
in
the
third
quarter
of
2023.
It
means
the
UK
has
entered
a
technical
recession,
which
is
generally
defined
as
two
successive
quarterly
falls
in
gross
domestic
product.
“While
the
economy
has
now
decreased
for
two
consecutive
quarters,
across
2023,
GDP
is
estimated
to
have
increased
by
0.1%
compared
with
2022,”
the
ONS
added.
Still,
prime
minister
Rishi
Sunak
addressed
business
leaders
to
insist
that
the
British
economy
had
turned
a
corner,
making
the
case
for
optimism
ahead
of
this
year’s
expected
General
Election.
Inflation
Still
at
4%
Wednesday’s
inflation
data
showed
that
the
Consumer
Price
Index
(CPI)
rose
4%
in
January,
below
forecasts
but
double
the
Bank
of
England’s
target
of
2%.
And
data
the
day
before
showed
a
fall
in
the
jobless
rate
but
another
rise
in
wage
growth.
These
competing
pressures
create
dilemmas
for
the
Bank
of
England,
but
the
MPC’s
next
rate
decision
is
not
until
late
March.
The
ONS
announced
monthly
data
for
December,
as
well
as
downward
revisions
to
readings
from
November
and
October.
In
December,
GDP
declined
0.1%
monthly,
a
better-than-expected
outcome
than
the
0.2%
fall
that
was
predicted,
according
to
FXStreet.
However,
the
damage
also
came
from
revisions
to
previous
monthly
data.
UK
Services
Output
Falls
The
UK
economy
grew
0.2%
in
November,
downwardly
revised
from
an
initially
reported
0.3%
climb.
GDP
slumped
0.5%
in
October,
the
outcome
lower
than
the
previously
reported
0.3%
decline.
“Services
output
fell
by
0.1%
in
December
2023,
and
in
the
three
months
to
December
2023
services
output
fell
by
0.2%,”
the
ONS
said.
“Production
output
grew
by
0.6%
in
December
2023,
but
in
the
three
months
to
December
2023
production
output
fell
by
1.0%.”
The
industrial
production
growth
for
December
topped
the
consensus
which
had
pencilled
in
a
0.1%
decline
from
a
month
earlier.
Output
had
risen
0.5%
in
November.
Across
Europe,
many
countries
are
either
in
recession
(Germany,
Sweden)
or
battling
to
avoid
it
(Italy).
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