UK economy shrank unexpectedly by 0.1% in October

The UK’s economy shrank unexpectedly in the lead up to the Budget, according to the latest official figures.

The economy contracted by 0.1% in October, the Office for National Statistics (ONS) said, whereas economists had been expecting it to grow by 0.1%. The economy also shrank by 0.1% in the three months to October.

The cyber-attack at Jaguar Land Rover continued to affect car production, with only a slight recovery in October from the previous month’s fall, while analysts said uncertainty ahead of the Budget had slowed consumer and business spending.

The weaker-than-expected figures strengthen the case for the Bank of England to cut interest rates at its meeting next week, analysts said.