UK economy shrank unexpectedly by 0.1% in October

According to the most recent official estimates, the UK's economy shrank unexpectedly in the lead up to the Budget. The economy contracted by 0. According to the Office for National Statistics (ONS), it rose by 1% in October, though economists had predicted it to rise by 0. 1%. The economy also shrank by 0. 1% in the three months to October. Jaguar Land Rover's cyberattack continued to impact vehicle manufacturing in October, with only marginal improvement in the previous month, according to analysts, as uncertainty ahead of the Budget slows consumer and company investment. Analysts said the weaker-than-expected results bolster the argument for the Bank of England's decision to cut interest rates at its meeting next week.

One of the government's top priorities has been economic growth. According to a Treasury spokesperson, the government was working to raise economic growth by lowering energy bills and major infrastructure improvements.

We are determined to defy the forecasts on growth and create good jobs,

the spokesperson said,

we are also investing in better public services. Sir Mel Stride, Labour's shadow chancellor, blaming the Budget for the unexpected drop, who said it was

a direct result of Labour''s economic mismanagement.

Rachel Reeves has deceived the British people for months. She said she would not raise taxes on working people, but she disregarded the promise earlier. She argued that there was a black hole in the public budgets, but there wasn't one. The surprise dip in the economy, according to Ruth Gregory, deputy chief UK economist at Capital Economics, was

a further reason to expect the Bank of England to cut interest rates next Thursday.

It's surprising that the economy has only grown in one of the last seven months,

she said. Production output dropped by 0. 2 percent from three months to October in the three months from three to 10. 5%, largely driven by a 17. 7% fall in vehicle manufacturing. Jaguar Land Rover's cyberattack halted production at its plants around the UK for the entire month of September, and there has been a halt to factory operations since early October. For the month, vehicle manufacturing resurgented, which raised output across the UK by 1. 1%. However, the ONS reported that vehicle manufacturing had been modest, at a much lower rate than that seen in August. In the three months to October, the services industry, which accounts for approximately three quarters of the economy and includes services such as professional services and retailing, did not expand at all.

After the economy fell by 0. 1 percent, October's contractions peaked by 0. In September, 1% was down and August was stagnant. The monthly GDP estimates are more volatile than the rolling three-month estimates, which are supposed to give a more realistic picture of growth. However, Jack Meaning, the UK chief economist and a former consultant at the Bank of England, told the BBC's Today programme that the economy was unambiguously poor.I'm continuing the story we've heard more or less this year as growth slows from robust numbers at the start to much smaller numbers now, and even outright contraction,he said.Ultimately, we didn't get as much of a bounce-back of the Jaguar Land Rover closure as we had expected. We expected that this would all be back to normal, but it seems that it may take a little longer.

Mr Meaning said that Barclays' survey revealed that the uncertainty ahead of the Budget weighed on the economy as people

held off purchases and big spending decisions.

Budget worries ahead of the chancellor's address had a numbing effect on spending, according to Scott Gardner, JP Morgan Personal Investing's investment strategist.

Budget rumors and ambiguity surrounding potential tax changes dampened the atmosphere among companies and consumers, prompting some to postpone key decisions until the Budget was approved,

he said. On Friday, card and gift storeCard Factory said pressures on customers had affected its confidence and shopping habits, adding that it was lowering its profit forecast due to lower than anticipated sales. Ferllor's increase to her financial cushion in the Budget

should help reduce volatility over the coming year,

said Fert Jimenez-England, associate economist at the National Institute of Economic and Social Research, although it was uncertain if it would raise economic growth. However, KPMG UK chief economist Yael Selfin said that investment from the private sector and government may help boost growth in the coming year.We expect investment to remain a key contributor to growth going into 2026 as a result," she said.