It’s the first time the UK financial system has suffered unfavorable progress in back-to-back months for the reason that pandemic.
Chancellor Rachel Reeves stated she was “dissatisfied” by the information after a weak month for pubs and eating places dragged on progress amid some uncertainty forward of the autumn Price range.
The Workplace for Nationwide Statistics (ONS) stated gross home product (GDP) contracted 0.1% in October.
The Chancellor stated: “We’re decided to ship financial progress as increased progress means elevated dwelling requirements for everybody, all over the place. That is what our Plan for Change is all about.
“Whereas the figures this month are disappointing, we have now put in place insurance policies to ship long-term financial progress.”
The most recent figures from the ONS observe a 0.1% estimated fall in September – that means it’s the first time the financial system has contracted for 2 consecutive months since March and April 2020, through the onset of the Covid-19 pandemic.
It marks a fractional shift within the outlook for the financial system after it eked out 0.1% progress over the newest quarter, between July and September.
The ONS stated the companies sector recorded no progress in October after additionally stalling in September.
Liz McKeown, the ONS’s director of financial statistics, stated: “The financial system contracted barely in October, with companies exhibiting no progress general and manufacturing and building each falling.
GDP fell 0.1% in October 2024. Companies confirmed no progress, whereas Manufacturing (-0.6%) and building (-0.4%) each fell.
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— Workplace for Nationwide Statistics (ONS) (@ONS) December 13, 2024
“Oil and gasoline extraction, pubs and eating places and retail all had weak months, partially offset by progress in telecoms, logistics, and authorized companies.
“Nonetheless, the financial system nonetheless grew just a little during the last three months as a complete.”
The ONS’s month-to-month enterprise survey confirmed indicators of a blended response forward of the autumn Price range announcement on the finish of the month.
Some industries, like producers, retailers and recruiters, stated turnover was affected as they waited for the result of the tax-setting assertion.
Others, like actual property and authorized companies, have been extra constructive and elevated exercise within the run-up, based on the ONS.
