From Morningstar:

The UK economy has officially entered a recession, with a 0.3% decline in GDP in the final quarter of 2023, falling short of expected figures. Prime Minister Rishi Sunak insisted the economy had turned a corner, despite the disappointing numbers.

Inflation in the UK remains high at 4%, while the jobless rate fell but wage growth increased. The Bank of England faces a dilemma with these competing pressures, with the next rate decision set for late March. The Office for National Statistics announced the monthly data for December, as well as downward revisions to readings from November and October.

The UK services output fell by 0.1% in December 2023, with a decline of 0.2% in the three months to December. However, production output grew by 0.6% in December, though the three-month output fell by 1.0%. The industrial output growth for December topped consensus figures. Across Europe, countries are either facing recession or trying to avoid it, including Germany and Italy.



Read more: UK Recession Confirmed by Latest GDP Data