"Figures from the Office for National Statistics (ONS) showed gross domestic product fell by 0.1%, after a 0.1% drop in output in September. City economists had predicted a 0.1% rise in October. After a fourth consecutive month without growth, economists said the latest snapshot would probably cement a Bank of England interest rate cut next week amid fading inflationary pressures, fears over the sluggish outlook, and rising unemployment."
"Highlighting caution among businesses and households in the run-up to the chancellor's tax-raising budget, the ONS said a sharp 0.3% decline in output in Britain's dominant service sector contributed most to the fall. Much of the decline was driven by a weakness in car sales and broader retail spending, alongside a slump in computer programming and consultancy activities. Construction output fell by 0.6%, while the production sector which includes manufacturing rose by 1.1% amid a recovery from the JLR attack"
"The UK economy has faltered more dramatically than we expected, said Andrew Wishart, a senior UK economist at Berenberg. This loss of momentum will bring inflation down more swiftly than we previously anticipated, allowing the BoE to act."
Gross domestic product fell by 0.1% in October following a 0.1% decline in September, against city forecasts of a 0.1% rise. The economy has now recorded four consecutive months without growth. A sharp 0.3% fall in the services sector was the largest contributor, driven by weak car sales, broader retail spending and a slump in computer programming and consultancy activities. Construction output declined by 0.6%, while production rose 1.1% amid a weaker-than-expected recovery from the Jaguar Land Rover cyber-attack. Businesses across services, manufacturing and production reported waiting for budget outcomes, and economists expect this to increase pressure for a Bank of England rate cut.
Read at www.theguardian.com
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