The UK’s economy has witnessed an unexpected drop during the three months to October, according to official figures.
As per the Office for National Statistics (ONS) data, GDP shrunk by 0.1 percent in the August to October period.
Economic output has continued to contract, with a surprise fall coming after an unexpected drop in September and stagnant growth in the period of August.
Britain's economy was undermined by two main factors: a significant disruption to car production following a cyber attack on Jaguar Land Rover and the general restraint in consumer spending ahead of November’s budget in the midst of concerns about the impacts of Rachel Reeves’s anticipated policies for businesses and households.
According to ONS, the UK’s services sector, during October, plunged by 0.3 percent while the construction sector fell by 0.6 percent. However, the production grew by 1.1 percent.
The ONS's director of economic statistics, Liz McKeown, said, "Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month.”
"Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail,” the statement read.
According to Barret Kupelian, chief economist at PwC, the drop in economy could be due to “speculation around the autumn budget kept households and businesses in wait-and-see mode.”
Sir Mel Stride, the Tory shadow chancellor, described the figures as "extremely concerning.”
He said that the decline in the economy is due to “a direct result of Labour's economic mismanagement.”
