According to the Office for National Statistics (ONS), business investment performed worse than anticipated, causing the economy to contract by 0. 3% as opposed to the 0.2% previously estimated.
Additionally, growth estimates for the first half of 2022 have been reduced. As rising prices hamper growth, the UK is predicted to enter a recession in the last three months of the year.
The Bank increased its key rate last week to 3. 5%, the highest level in 14 years, which is increasing the cost of loan and mortgage repayment for those who have them. The US and the eurozone are also anticipated to experience a recession next year, so the UK is not the only nation whose economy is weakening.