U.K. economy shrinks unexpectedly in October

The United Kingdom (TADAWUL:4280 )'s economy experienced an unexpected contraction in October, with Gross Domestic Product (GDP) decreasing by 0.1% from the previous month. This decline was reported by the Office for National Statistics (ONS) on Friday and is attributed to a fall in production output. This drop countered the forecasts of economists who had anticipated a 0.1% increase in GDP for the month.

This contraction marks the second month in a row that the U.K. has seen its economy shrink, following another 0.1% decline in September. Despite the monthly downturns, the ONS noted that the real GDP had a marginal growth of 0.1% in the three-month period ending in October, compared to the three months ending in July.

Following the release of the economic data, the British pound weakened, with a 0.3% decrease against the U.S. dollar, reaching $1.2627 by 7:45 a.m. in London.

The U.K. Finance Minister, Rachel Reeves, acknowledged the disappointing nature of the October figures in a statement released on Friday. She maintained, however, that the government's economic policies are aimed at fostering long-term growth. Reeves highlighted the implementation of a cap on corporation tax and the initiation of a decade-long infrastructure plan as key components of the government's strategy to stimulate economic expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com