- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
- King and Lewis propel West Indies to T20 triumph over Sri Lanka
- Pre-Halloween 'Terrifier' lands atop North America box office
- 'I still plan to compete and play next season,' says Djokovic
- Harris, Trump seek advantage in knife-edge election battle
- Chepngetich shatters women's marathon world record in Chicago
- Kamindu and Asalanka power Sri Lanka to 179 against West Indies
- Chepngetich shatters women's marathon world record as Korir wins in Chicago
- Spain send injured Yamal home 'to prioritise player's health'
- In milestone, SpaceX 'catches' megarocket booster after test flight
- Iraq walks fine line with pro-Iran factions to avoid war
- Race four abandoned after New Zealand breeze into 3-0 lead in America's Cup
- West Indies win toss, put Sri Lanka in to bat in first T20
- Sudan rescuers say air strike killed 23 in Khartoum market
- Netanyahu tells UN to move Lebanon peacekeepers out of 'harm's way'
- Bangladeshi Hindus defy attack worries to celebrate festival
- Kiwis three up in America's Cup as Ineos pay for time penalty
- In a first, SpaceX 'catches' megarocket booster after test flight
- Dominant England crush Scotland at Women's T20 World Cup
- Dropped: The rise and fall of Pakistan batting maestro Babar Azam
- Israel fights Hezbollah on the ground, pounds Lebanon from the air
- Sabalenka outlasts local hero Zheng to win third Wuhan Open title
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Former Pakistan captain Azam dropped for second England Test
- 'Opportunist' Dupont dazzles on Toulouse return
- Australia replace injured Vlaeminck with Graham at Women's T20 World Cup
- Sinner wins Shanghai Masters to deny Djokovic 100th career title
- Ubisoft fears assassin's hit over falling sales
- Israel hits Lebanon from the air and fights Hezbollah on the ground
- China's Yin has 'goosebumps' as she romps to LPGA win in Shanghai
- Pakistan to re-use Multan pitch for second England Test
- Blair and King Charles hail Salmond's 'devotion' to Scotland
- Vietnam, China hold talks on calming South China Sea tensions
- SpaceX will try to 'catch' giant Starship rocket shortly before landing
- England captain Stokes in line for second Pakistan Test return
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- Israel widens Lebanon strikes as troops fight Hezbollah along border
- Bowlers' graveyards: Pakistan's placid pitches under fresh fire
UK economy shrinks before election year
Britain's economy unexpectedly shrank in the third quarter and flatlined in the previous three months, official data showed Friday, raising fears of a recession before an election due next year.
The downbeat news delivers a blow to Conservative Prime Minister Rishi Sunak, who trails opposition Labour leader Keir Starmer in the polls despite a sharp slowdown of inflation.
Gross domestic product (GDP) contracted 0.1 percent between July and September on sliding services output, down from a prior estimate of zero, the Office for National Statistics (ONS) said in a statement.
Activity was hit by the Bank of England's aggressive interest-rate hikes, which are aimed at curbing elevated inflation and easing a cost-of-living crisis.
The ONS added that the economy turned flat in the second quarter, slashing its previous estimate of 0.2-percent expansion.
That sparked speculation over a potential recession which is defined as two straight quarters of negative economic growth.
"The fall in real GDP in the third quarter may mean that the mildest of mild recessions started," noted Capital Economics analyst Ashley Webb.
"But whether or not there is a small recession, the big picture is that we expect real GDP growth to remain subdued throughout 2024."
- Inflation eases -
Sunak was buoyed on Wednesday as separate ONS data showed inflation slowed sharply to the lowest level in more than two years.
The Consumer Prices Index hit 3.9 percent in November from 4.6 percent in the previous month, attaining the weakest level since September 2021.
The rate is nevertheless almost double the BoE's target of 2.0 percent.
Yet core inflation -- which strips out food and energy costs -- eased only slightly to 5.2 percent in November from 5.6 percent in October.
The BoE last week froze its key interest rate at a 15-year peak of 5.25 percent -- but warned that it will remain elevated to tackle stubbornly high consumer prices.
The central bank hit pause in September, November and December, snapping a series of 14 rate hikes as inflation slowed.
Those hikes dented economic activity because commercial banks pass on the higher borrowing costs to both businesses and consumers.
- 'Retrenchment' -
"Retrenchment by households and businesses in response to the jump in borrowing costs dragged down GDP on a quarter-on-quarter basis," said Pantheon Macro economist Samuel Tombs.
In brighter news, the ONS also revealed on Friday that retail sales strengthened in November as shoppers snapped up cut-price bargains in the run-up to Christmas.
Retail sales volumes increased by 1.3 percent in November. That comfortably beat market expectations of a 0.4-percent gain.
Darren Morgan, ONS director of economic statistics, said the overall UK economy was "little changed" over the entire year.
"The latest (GDP) data... show the economy performed slightly less well in the last two quarters than our initial estimates," Morgan added.
"The broader picture, though, remains one of an economy that has been little changed over the last year."
UK inflation had surged to a 41-year peak at 11.1 percent in October 2022, stoked by spiking energy prices after the invasion of Ukraine by major oil and gas producer Russia and sparking a cost-of-living squeeze.
A.Mahlangu--AMWN