The U.K. economy unexpectedly contracted by 0.3 percent in August, raising fears of a recession.

The country's gross domestic product (GDP) also shrank 0.3 percent in the last three-month period, compared with the previous three months, the ONS said in a statement. The agency also revised its estimate for July, reporting an increase of 0.1 percent (up from 0.2 percent in the previous estimate), Politico reported.

The manufacturing sector, which fell 1.8 percent, was the main driver of the decline, the ONS said.

Back in August, the Bank of England warned that the U.K. was headed for recession "from the fourth quarter of this year." A recession is usually defined as two consecutive quarters of negative growth.

UK Chancellor of the Exchequer Kwasi Kwarteng said, countries around the world are now facing problems, especially as a result of high energy prices caused by Putin's barbaric actions in Ukraine.

The GDP figures show that the U.K. economy is in terrible shape because of this government. This is a Tory crisis created in Downing Street and paid for by workers, tweeted Labour Party shadow chancellor Rachel Reeves.