The year has started and despite the continued fall in inflation, budgets remain squeezed, while the threat of a recession looms.
Last month’s GDP figures released just before the Christmas break showed that UK GDP fell by 0.1 per cent in Q3 compared to the previous quarter, revised down from a first estimate of no growth - highlighting further the strain on the UK economy.
The second quarter of 2023 was also revised down and is estimated to have shown no growth compared to the 0.2 per cent increase previously estimated.
Commenting at the time the figures were published, Richard Carter, head of fixed interest research at Quilter Cheviot, said: “Growth is weakening and interest rates are really beginning to bite and while a recession has just been avoided to date, there is no guarantee one will be avoided in 2024.”
The ONS is set to release its latest GDP data on Friday 13, which will shed further light on how close we are to entering a recession.
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