Economy shrinks by 0.3 per cent despite October uplift
The UK economy shrank by 0.3 per cent over the past three months as soaring prices hit businesses and households.
This was despite a brief respite in October alone when the economy grew by 0.5 per cent,
The uplift in October followed a fall of 0.6 per cent in September which was affected by the additional Bank Holiday for the Queen 's funeral when many businesses closed or had shorter opening hours.
The services sector grew by 0.6 per cent in October, after falling by 0.8 per cent in the previous month.
Output in consumer-facing services grew by 1.2 per cent in October, after falls of 1.7 per cent in September and 1.6 per cent in August.
Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “It was pleasing to see the economy return to growth in October as activity picked up as a result of the disruption we saw from the state funeral in September.
“Nevertheless, the results over the past three months make it clear that the UK is facing the prospect of a recession as the fallout from soaring inflation and higher energy bills continues to drive the cost of doing business crisis.
“Despite the uncertainty, local businesses continue to demonstrate admirable resolve - data from our latest Quarterly Business Report revealed that just under half of the businesses in the region are confident their turnover will increase over the next 12 months.
“As we embark on a period of fiscal belt tightening, it 's clear that businesses will need reassurances from Government that they will create a plan that will allow firms to flourish - offering clarity on the long term support available for businesses suffering from rocketing energy bills is going to be crucial. ”