New research shows contraction of the UK economy is accelerating
The UK economy contracted 1% in the three months to November, new research from the National Institute of Economic and Social Research (NIESR) has shown.
The think tank, one of the UK's leading economic forecasters, said the drop came after a 0.8% fall in the three months to October, with the economy contracting at a much faster pace than appeared likely just weeks ago.
Following a review of the latest industrial production data, the NIESR said it believes the contraction in the economy will accelerate during the fourth quarter.
The Office for National Statistics will report on the final quarter's GDP in January.
The new data from the think tank is the latest indication that the UK economy is sliding into a recession. Prime minister Gordon Brown has already warned that this is likely, but the NIESR said that the recession could be deeper than initially thought.
