Another nasty shock for Reeves as economy shrinks

The UK economy shrank by 0. 1 per cent in October in a fresh blow for embattled chancellor Rachel Reeves.

- HARRIETTE BOUCHER

The Office for National Statistics (ONS) said gross domestic product (GDP) fell by 0.1 per cent, following a 0.1 per cent decline in September. The economy has not grown since June, after no growth was recorded in August. Most economists were expecting to see a rise of 0.1 per cent for October, anticipating that Jaguar Land Rover's recovery would lead to a bounceback after a cyber attack on the carmaker in August hit the activity in the manufacturing sector.

The month-on-month car production activity increased by 9.5 per cent in October, but remained 21.8 per cent lower than in August when Jaguar Land Rover was forced to temporarily halt production.

ONS director of economic statistics Liz McKeown said: "Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month."