Newly updated data from the UK government, released on Friday, reveals that the nation’s economy contracted in the third quarter of this year. This suggests that the country may be heading towards a recession.
Revised figures from the British Office of National Statistics reveal that the country’s gross domestic product decreased by 0.1% between July and September of this year. Previous calculations for this three-month period had suggested there was no change in economic growth.
The revised data shows that the GDP did not experience any growth in the previous quarter, despite initial estimates suggesting a 0.2% increase.
According to the National Bureau of Economic Research, a nonprofit research organization in the United States, a recession is defined as a notable decrease in economic activity that affects various sectors and lasts for more than a few months. Typically, a recession is identified when the economy experiences two consecutive quarters of negative growth.
The recent report from the British statistics office revealed positive results for retail sales in the previous month. Revised data indicated a 1.3% increase in November, contrary to the initial estimate of a 0.3% decrease. The office also noted that nonfood purchases were the main driver of this rise, with a 2.3% increase during the month.
Analysts from the government propose that the sales on “Black Friday” – a day in late November where discounts are offered to encourage early Christmas shopping – probably played a role in the rise of sales.