GDP fell by 0.2% in the three months to September as services, production and construction industries all slowed down and cost-of-living pressures bite
"While the world economy faces extreme turbulence, the fundamental resilience of the British economy is cause for optimism in the long run."
Shadow chancellor Rachel Reeves said: "Today's numbers are another page of failure in the Tories' record on growth, and the reality of this failure is family finances crunched, British businesses left behind and more anxiety for the future. Britain's unique exposure to economic shocks has been down to a Conservative-led decade of weak growth, low productivity and under-investment and widening inequality.
"We’re already set to be near the bottom of global league tables on growth, but all the Tories offer yet again is austerity. Britain has so much potential to grow.
"We have the talent. We have the capacity. Labour's Green Prosperity Plan, our modern industrial strategy, our plan to boost skills and our active partnership with business will get our economy firing on all cylinders."
The Federation of Small Businesses called the latest GDP figures 'dreadful news'. National chairman Martin McTague said: "Confirmation of a shrinking economy is dreadful news for small businesses that have been facing increasing recessionary pressures for months now.
"Lower levels of reserves and resources mean they are more vulnerable to downturns, and at a time when confidence is deteriorating in both consumers and businesses, the outlook for the UK economy is now very bleak indeed.
The fall in GDP is one headline figure made up of countless bits of disappointing news for small businesses across the country – a new venue or premises they couldn't open, a contract which ended unexpectedly, a staff member they had to let go.
"Taken together, the impact on the economy is huge and the Government must demonstrate that it has grasped the scale of the issue."
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