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UK’s economy shrinks unexpectedly by 0.1% in October

2024/12/13/08:13
in UK
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GDP figures underline the scale of the challenge for Labour to get the economy growing

Britain’s economy shrank by 0.1% in October, underlining the scale of Labour’s challenge to get the economy growing.

Figures from the Office for National Statistics showed the unexpected fall in GDP was driven by construction and production, while the dominant services sector stagnated.

Economists, polled by Reuters, had expected the economy to grow by 0.1%. It follows sluggish growth of 0.1% in the third quarter of the year, according to figures last month.

Keir Starmer said last week it was the government’s “aim” to make the UK the fastest-growing G7 economy while pledging to deliver higher real household disposable income by 2029.

However, a range of companies have said they plan to slow spending and hiring after Labour’s budget in October, which included £40bn in tax rises.

Source: The Guardian

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