Britain's Economic Downturn: Challenges for Rachel Reeves

Britain's economy contracted by 0.1% in the three months to October, contrary to expected stability. The decline highlights challenges for finance minister Rachel Reeves ahead of her budget. The contraction was driven by drops in services and construction, prompting expectations of a Bank of England rate cut.

Britain's economy took an unexpected downturn in the three months leading to October, contracting by 0.1%, as uncertainty loomed ahead of finance minister Rachel Reeves' budget announcement.

The data, released by the Office for National Statistics, highlighted declines in the services and construction sectors, suggesting broad-based economic weakness.

The contraction pressures the Bank of England to reconsider its growth expectations and points towards a probable interest rate cut, with economists forecasting a 90% likelihood of such a move.

(With inputs from agencies.)