UK Economy Shrinks in Third Quarter, Raising Recession Risk
- GDP revised to show 0.1% contraction, 2Q also downgraded
- Figures put pressure on Bank of England to start cutting rates
UK GDP dropped 0.1% from the second quarter.
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The UK economy unexpectedly shrank in the third quarter, raising the possibility that Britain is already in a recession and fueling bets on the Bank of England pivoting to interest-rate cuts as soon as the spring.
Revised figures Friday showed GDP dropped 0.1% from the second quarter, a downgrade from the zero growth initially estimated. Economists had expected the second estimate to be unchanged.