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13h ago

UK Economy Contracts Again in October, Defying Forecasts

Analysts cite fallout from Jaguar Land Rover’s cyberattack alongside spending delays during pre‑Budget speculation.

A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Overview

  • Official ONS data showed GDP fell 0.1% in October after a 0.1% decline in September, surprising expectations for a small rise.
  • Output also slipped 0.1% on a three‑month basis, and the economy has not grown since June.
  • Services dropped 0.3% and construction fell 0.6%, while production rose 1.1% on a partial manufacturing rebound.
  • The ONS and economists pointed to lingering disruption from the JLR cyberattack, with car output only partly recovering and still well below August levels.
  • Sterling weakened and markets intensified bets on a Bank of England rate cut next week as the weak print increased pressure on Chancellor Rachel Reeves’s growth strategy.