Output fall takes us half way to recession

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.