Economy

UK ended 2023 in mild recession

British economy shrank by 0.3 in the final quarter of last year, new figures show

Living standards in the UK recovered to their highest level in more than two years at the end of 2023 as inflation eased and workers enjoyed bumper pay rises. Picture: Getty

The UK economy slipped into a mild recession in the final quarter of last year, new figures show, but is already showing some signs of improvement.

The British Office for National Statistics (ONS) said that the economy shrank by 0.1 per cent in the third quarter and 0.3 per cent in the fourth - in line with analysts’ forecasts.

However small revisions not visible in the headline figures, which are rounded to one decimal place, ...