UK Economy Contracts as High Interest Rates Bite

Fears of recession rise as all main sectors show negative growth, putting Prime Minister's growth pledge in jeopardy.

The UK economy unexpectedly contracted by 0.3% in October, with all main sectors - services, manufacturing, and construction - showing negative growth.
High interest rates, implemented by the Bank of England to tackle inflation, are squeezing consumers and businesses, contributing to the economic contraction.
Despite the contraction, the Bank of England is expected to keep interest rates at their current 15-year high of 5.25% in its next rate decision.
Concerns are rising over the possibility of a recession, with the economy showing zero growth in the third quarter of the year.
The poor economic performance puts Prime Minister Rishi Sunak's pledge to grow the economy in jeopardy, with some predicting no significant growth until 2025.