UK economy shrinks unexpectedly in October


Unlock the Editor’s Digest for free

The UK economy unexpectedly contracted in October, driven by falls in every sector and fuelling concerns that high interest rates could push the country into a downturn.

Gross domestic product fell 0.3 per cent between September and October, data published by the Office for National Statistics showed on Wednesday.

Economists had expected no change in the GDP number, after a 0.2 per cent expansion the previous month.

Services output fell by 0.2 per cent in October, driven by a fall in information and communication, and was the main contributor to the decline in GDP.

Production and construction also fell sharply, by 0.8 per cent and 0.5 per cent respectively.

The data comes ahead of Thursday’s Bank of England decision on monetary policy. The Bank is expected to keep interest rates unchanged at a 15-year high of 5.25 per cent.

This is a developing story.