The value of all goods and services produced in the nation, or the gross domestic product, decreased by a revised 0.3% from July to September, according to the Office for National Statistics. <br /><br />Two consecutive quarters of negative growth constitute a recession, according to official definitions. If the economy also shrank in the last quarter of this year, it would take place. <br /><br />Contrary to initial estimates, the manufacturing and construction industries underperformed. <br /><br />Construction activity actually decreased by 0.2% rather than growing by 0.6% as had been reported in November, while manufacturing activity decreased by 2.8%, worse than the previously reported 2.3% decline. <br /><br />The director of economic statistics at the ONS also referred to electricity generation as being "significantly weaker." <br /><br />Household spending decreased for the first time since the final spring lockdown of 2021 while household earnings continued to shrink, but at a slower rate than in the first two quarters of 2022. <br /><br />For the fourth quarter in a row, households' discretionary income decreased by 0.5%. <br /><br />Spending on travel, transportation, home goods and services, as well as on food and drink, decreased during the third quarter, with household spending down by a revised 1.1%. <br /><br />As a result of this decreased disposable income and the cost of living crisis, which is being fueled by rising inflation, a slowdown in real consumption spending was observed during the last year, especially in restaurants and hotels, as well as in recreation and culture. <br /><br />According to Chancellor of the Exchequer Jeremy Hunt, the invasion of Ukraine was to blame for the high inflation rates.
