UK Economy Contracts for Second Consecutive Month in October
The contraction follows a series of weaker-than-expected economic data, including poor business surveys and retail sales.
LONDON: The UK economy shrank by 0.1% in October, marking the second consecutive monthly decline, the first such drop since the onset of the COVID-19 pandemic. The Office for National Statistics reported that the services sector stagnated, while manufacturing and construction output also fell. The contraction follows a series of weaker-than-expected economic data, including poor business surveys and retail sales.
Finance Minister Rachel Reeves responded to the disappointing figures, stating that policies aimed at long-term growth had been put in place, with the impact of her recent budget expected to be felt from November. The budget included tax hikes on businesses alongside increased public service investment.
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In a separate report, UK trade data showed a decline in imports and exports, with exports to the European Union rising for the first time in nearly a year. Despite these challenges, the Bank of England is not expected to cut interest rates soon, though economic growth forecasts have been revised down for 2024.
