Economists had predicted a return to modest growth following September's fall, but uncertainty ahead of the October Budget and persistently high interest rates kept both consumers and businesses from spending freely.
Chancellor Rachel Reeves described the figures as "disappointing" but maintained that policies are in place to deliver long-term growth. Shadow Chancellor Mel Stride argued the latest numbers reveal the negative impact of the government's decisions and pessimistic economic messaging.
Paul Dales, chief UK economist at Capital Economics, said higher interest rates may be weighing on activity more than anticipated. Although the Bank of England has cut rates twice this year, they remain elevated compared to previous years.
Despite the weak October figure, some experts, including Simon Wells from HSBC, cautioned against reading too much into a single month's data, as initial estimates are often subject to revision.
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