UK economic slowdown 'worsening'

The UK economy contracted 1% between September and November, the National Institute of Economic and Social Research (NIESR) has estimated.

This fall followed after a 0.8% drop in the three months to the end of October, said the think tank.

Indicating that the rate of output decline is "accelerating", the NIESR now expects a fall of more than 1% in the last three months of the year.

Official data showed that the economy shrank 0.5% from July to September.

But it will not be until January that the Office for National Statistics reports on the final quarter's GDP.

If it reports a decline for the three months to December, then the UK will be in officially in recession under the generally accepted definition of two consecutive quarters of decline.

The NIESR says it has a good track record in forecasting GDP growth in advance of the official figures.

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