The UK economy contracted in the lead up to the Budget, according to new figures from the Office for National Statistics (ONS).
Monthly GDP (gross domestic product), a key measure of economy growth, is estimated to have fallen 0.1% in October, below expectations for 0.1% growth, following a 0.1% fall in September and no growth in August.
It reflects, across key sectors, services activity dipping 0.3% month-on-month, construction activity declining 0.6% month-on-month, and production activity growing 1.1% month-on-month.
For the three months to October, GDP fell 0.1%, following growth of 0.1% in the three months to September and 0.2% in the three months to August. Services showed no growth, while production (-0.5%) and construction (-0.3%) both fell. Some of this weakness is still impacted by the cyber-attack on Jaguar Land Rover, which hit car output earlier in the period.
Liz McKeown, director of economic statistics, ONS, said: “The economy contracted slightly in the latest three months, as production fell again and services growth stalled.
“Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month.”
McKeown added: “Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail.”
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