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First step towards recession as economy shrinks, official GDP figures show | Business News

The UK economy contracted by 0.2% in the third quarter, early official figures show – prompting the chancellor to warn that the “tough road ahead” will require “extremely difficult decisions”.

The figure marked the first step towards recession.

The Office for National Statistics (ONS) reported a dip in output for September, leaving gross domestic product (GDP) in negative territory for the July-September period as a whole.

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The quarterly GDP is the value of all goods and services produced during a three-month period and is a measure of the health of the economy.

The official definition of a recession is two consecutive quarters of negative growth.

It would be achieved should the economy also contract in the fourth quarter.

“I am under no illusion that there is a tough road ahead – one which will require extremely difficult decisions to restore…

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