UK Economy Shrinks for Second Month, Raising Concerns Over Labour's Growth Strategy

Economic contraction tests the Labour government's promise of long-term growth as MPs and experts voice concerns over stagnation and industrial challenges.

The UK economy contracted by 0.1% in both September and October, marking the first consecutive monthly declines since early 2020 and fueling fears of stagnation or a short recession.
Labour MPs express growing frustration over the lack of immediate economic improvements, fearing voter impatience and dissatisfaction with the government's early performance.
Chancellor Rachel Reeves defends the government's economic policies as focused on long-term growth, while critics argue that the Budget created uncertainty and dampened business and consumer confidence.
Key industries, including construction and manufacturing, reported declines in output, with experts warning of ongoing challenges in sectors like chemicals, machinery, and pharmaceuticals.
Economic analysts predict minimal growth in the coming months, with some optimism tied to increased government spending and potential interest rate cuts in 2025.