Britain's Economy Faces Consecutive GDP Dip Ahead of New Budget

The UK's economy contracted for the second consecutive month in October, marking the first such decline since early in the pandemic. Gross domestic product fell by 0.1% for both October and September. This comes amid underwhelming business and retail figures and a new budget imposing significant tax increases.

The UK economy witnessed its second straight month of contraction in October, preceding the new administration's inaugural budget announcement. This marks the first continuous output decline since the COVID-19 pandemic's early days.

According to the Office for National Statistics, the gross domestic product experienced a 0.1% shrink on a monthly basis in both October and September. This follows economists’ expectations of a minor growth, emphasizing challenges for the manufacturing and construction sectors, while services remained stagnant.

The economic forecast darkens further as Friday's data complements a sequence of lackluster business surveys and retail sales. Finance Minister Rachel Reeves has introduced policy measures targeting long-term growth, though immediate impacts include heightened taxes for businesses and sterling's dip against the U.S. dollar.

(With inputs from agencies.)