Bank of England in the City of London on 6th November 2024 in London, United Kingdom. The City of London is a city, ceremonial county and local government district that contains the primary central business district CBD of London. The City of London is widely referred to simply as the City is also colloquially known as the Square Mile. (photo by Mike Kemp/In Pictures via Getty Images)
Mike Kemp | In Pictures | Getty Images
The U.K. economy contracted unexpectedly in October, according to data from Britain’s Office for National Statistics (ONS).
Gross Domestic Product fell by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.
It marked the country’s second consecutive economic downturn, following a 0.1% GDP decline in September.
Real GDP is estimated to have grown 0.1% in the three months to October, the ONS said, compared to the previous three months ending in July.
Sterling declined on the back of the disappointing print, trading 0.3% lower against the U.S. dollar at $1.2627 by 7:45 a.m. London time.
In a statement on Friday, U.K. Finance Minister Rachel Reeves conceded that the October figures were “disappointing,” but defended the government’s divisive economic strategies.
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