Revised British government statistics released Friday show the nation’s economy shrank in the third quarter of this year, indicating the country could be headed into a recession.
Adjusted data from the British Office of National Statistics show the nation’s gross domestic product shrank by 0.1% from July to September of this year. Initial estimates for the three-month period had indicated there had been no growth.
The adjusted figures also indicate there had been no growth in the GDP the previous quarter of the year, where initial estimates had indicated there had been 0.2% growth.
An economy is typically thought to be in recession if it shrinks two consecutive quarters, although economists with the National Bureau of Economic Research, a nonprofit U.S. research organization, define a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
The British statistics office had better news on retail sales last month. Adjusted statistics showed retail sales rose by 1.3% in November, whereas initial estimates had shown them down 0.3%. The office showed nonfood purchases drove the increase, rising by 2.3% during the month.
Government analysts suggest sales on “Black Friday” – a day in late November on which sales bargains are offered to spur early Christmas shopping – likely contributed to the increased sales.
