Economy shrinks unexpectedly

The UK's GDP dropped by 0.3% in October, as per Office for National Statistics (ONS) data. Experts had predicted a smaller contraction of just 0.1%. 

Negative sector trend

This decline comes after a 0.2% growth in September and marks the first time since July that all three main sectors monitored by the ONS have dipped into negative territory. 

Sectors impacted the most

The contraction is attributed to decline in services, manufacturing, and construction sectors. 

Recession concerns

This raises worries that the economy could shrink further in the final three months of 2023, which might bring the UK close to a recession. 

Potential rate cuts

If the economy continues to weaken, the Bank of England might consider reducing interest rates in 2024.