It means that should the same happen in the next quarter, when the figures are announced in January, then we will officailly be in a recession. Compared to a year ago output is up 0.3%,
Going into a recession now, as people seem to be spending less as a result of the credit crunch, looks inevitable.
The news of such a steep decline puts pressure on the MPC to cut interest rates when it next meets, with everyone on the committe having voted for a rate cut last time a cut seems likely.
