The UK economy unexpectedly contracted for a second consecutive month in October, underlining the fragility of growth as households and businesses reined in activity ahead of the Chancellor’s Autumn Budget.
Gross domestic product fell by 0.1 per cent in October, matching the decline seen in September, according to figures published by the Office for National Statistics. Economists had expected the economy to return to modest growth, forecasting an expansion of 0.1 per cent at the start of the fourth quarter.
The data showed that momentum failed to recover after disruption in September caused by a cyberattack that halted production at Jaguar Land Rover for much of the month. On a rolling three-month basis, output also fell by 0.1 per cent, pointing to a broader loss of economic traction.
Construction was the weakest-performing sector, with activity down 0.6 per cent in October, while the dominant services sector contracted by 0.3 per cent, marking its worst performance in three months. Production output rose by 1.1 per cent as car manufacturing rebounded following the end of the JLR shutdown, with vehicle output jumping 9.5 per cent.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
