U.K. GDP Drops 0.4% – Recession Woes

U.K. GDP unexpectedly fell 0.4% between July and September as the recession extended into a record sixth straight quarter, according to preliminary data from the Office for National Statistics. The figures were significantly worse than expected, with economists on average having predicted that GDP would edge up 0.1% in the quarter. Compared to the third quarter of 2008, output was down 5.2%.

The U.K.’s recession is now the longest since quarterly records began in 1955. The economy has also contracted around 6% from its peak, surpassing the 5.8% decline in the early 1980s recession, said Charles Davis, senior economist at the Centre for Economics and Business Research.