Recession looms as UK economy starts to shrink

The UK appears to be heading into recession after the latest official figures showed the economy shrank between July and September.

The economy contracted by 0.2% between July and September as soaring prices hit businesses and households.

A country is in recession when its economy shrinks for two three-month periods in a row. The UK is expected to be in one by the end of the year.

The Bank of England said the recession will be the longest on record.

A recession has been widely forecast in the UK for some time due to the prices of goods such as food, fuel and energy soaring, which is down to several factors, including the war in Ukraine.

The contraction in the economy in the three months to September was driven by a decline in manufacturing, which was seen "across most industries", the Office for National Statistics (ONS), which published the figures, said.

It said customer-facing industries also "fared badly", with shops hard hit.

Prices for goods have been rising at the fast rate for 40 years, which has led to many households cutting down on spending due to the squeeze of higher prices.