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Economic output fell by 0.3% in quarterly terms compared with a
previous estimate of -0.2%, the Office for National Statistics
said.
The ONS said the data put Britain bottom in the G7 in terms of
quarterly growth, though the readings were skewed a little to
the downside by the one-off bank holiday for Queen Elizabeth's
funeral.
Business investment fell by 2.5% in quarterly terms, compared
with a previous first estimate of a 0.5% drop.
"Looking ahead, the UK likely will continue to underperform. We
expect Britain to suffer the deepest recession among major
advanced economies in 2023, due to the severity of the headwinds
from both monetary and fiscal policy," said economist Gabriella
Dickens from Pantheon Macroeconomics.
The ONS said British economic output in Q3 was 0.8% below its
level of late 2019, compared with a previous estimate of 0.4%
below and in contrast to other G7 countries that have recovered.
While the dominant services sector expanded 0.1% in the quarter,
declines in manufacturing and construction dragged the headline
figure down.
All 13 manufacturing sub-sectors declined in the third quarter,
the ONS said, while inflation-adjusted household disposable
income contracted for a fourth quarter.
The vast majority of economists polled by Reuters expect the
economy will contract again in the current quarter, which in the
eyes of some analysts defines a recession.
"Even if the UK economy avoids a recession - and today's
revisions make that harder - it is likely that at least consumer
spending and incomes will be falling in Q4 and into 2023," said
Elizabeth Martins, senior economist at HSBC.
(Reporting by Andy Bruce, Editing by Paul Sandle, John
Stonestreet and Catherine Evans)
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