By Ian McConnell

UK economic output tumbled 0.3 per cent month-on-month in August, official figures showed yesterday, reinforcing recession fears.

The data, published yesterday by the Office for National Statistics, were worse than expected, with economists polled by Reuters having forecast overall that gross domestic product would have been unchanged between July and August. Comparing the three months to August with the March to May period, GDP was also down 0.3%.

Month-on-month growth in UK GDP in July was revised down yesterday from 0.2% to 0.1%.

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UK manufacturing output was down 1.6% month-on-month in August, while the services sector contracted by 0.1%.

Tom Stevenson, investment director for personal investing at Fidelity International, said: “[The] GDP figures confirm the UK economy’s inevitable slide towards recession. Several crises are unfolding at the same time, all of which stem from the soaring cost of energy...If recession is accompanied by a housing slump, businesses and households will face a very tough couple of years.”