UK economy shrinks for second month in a row

The UK economy shrank for the second month in a row in October as concerns about the Budget continued to weigh on confidence.
Official figures showed a 0.1% drop, despite expectations that the economy would return to growth after a fall in September.
The Office for National Statistics (ONS) said that activity had stalled or declined with pubs, restaurants and retail among sectors reporting “weak months”.
Chancellor Rachel Reeves said the figure was “disappointing”, but added: “We have put in place policies to deliver long-term economic growth.”

Shadow chancellor Mel Stride said: “This fall in growth shows the stark impact of the chancellor’s decisions and continually talking down the economy.”
KPMG’s chief economist Yael Selfin said that activity was “held back by uncertainty ahead of the Budget on 30 October” as businesses and consumers held back on spending.
But some industries, such as real estate, law firms and accountancy, brought forward work before Reeves announced the Budget, the ONS said.
Separately, a survey measuring consumer confidence in December found people were a little more positive about their personal finances for the year ahead.
But the findings from market research firm GfK found that “views on the economy are unchanged from November which suggests people don’t know where we are going”.
“In a nutshell, it’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence,” said Neil Bellamy, consumer insights director at NIQ GfK.
Shortly after becoming prime minister in July, Sir Keir Starmer warned that the Budget would be “painful” following 14 years of Tory government.
He later denied that he was talking down the economy.