Q3 GDP contraction in the UK indicates that a recession may have started

According to revised government numbers, Britain's gross domestic product dropped from July to September after remaining flat for the preceding three months, raising the possibility that the country's economy is currently experiencing a recession.

The third-quarter GDP shrank by 0.1%, according to data released on Friday by the Office for National Statistics.

Prior to this, it had predicted that there had been no change in the economy over the previous three months, and most of the analysts surveyed by Reuters had anticipated yet another unaltered figure.

The ONS further stated that, contrary to an earlier estimate of 0.2% increase, economic production for the second quarter was now expected to have seen no growth.

Separate statistics, however, revealed that retail sales increased 1.3% from October to November, a far larger increase than anticipated.

The Conservative Party is trailing in polls ahead of the anticipated election in 2019, but Finance Minister Jeremy Hunt said that the economy's prognosis was not as dire as the most recent official statistics indicated.

In a statement, Hunt stated, "The medium-term outlook for the UK economy is far more optimistic than these numbers suggest."

(Sources: investing.com, reuters.com)