UK economy shrank unexpectedly before budget, data shows

The UK economy unexpectedly contracted by 0.1% in October, according to the Office for National Statistics, following a similar decline in September. This downturn, occurring before the Chancellor's budget announcement, was primarily driven by a decrease in consumer spending and a struggling car manufacturing sector still recovering from a cyber-attack. The service sector, a dominant force in the UK economy, experienced a notable decline, alongside weaknesses in retail, computer programming, and construction. Economists suggest this economic slowdown will likely prompt the Bank of England to cut interest rates amid concerns about sluggish growth and rising unemployment. Businesses across various sectors reported hesitations related to the upcoming budget, impacting manufacturing, construction, and other industries.

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