The British economy contracted by 0.1% month-on-month in October, following a similar decline in September, and falling short of market expectations for a 0.1% expansion.
UK GDP unexpectedly shrinks in October
The largest negative contribution came from the production sector, which dropped by 0.6%, driven by declines in manufacturing (-0.6%), particularly in pharmaceutical products and preparations (-2.6%), machinery and equipment (-2.8%), and chemicals (-3.7%). The mining and quarrying sector also fell by 3.1%, and sewerage and waste management edged down by 0.2%, while utilities grew by 1.4%. Construction decreased by 0.4%, and the services sector showed no growth.
Few positive news
Positive contributions from the information and communication subsector (0.9%), especially telecommunications (2.8%), were offset by declines in support service activities (-0.8%), employment activities (-2.3%), and others. "Oil and gas extraction, pubs and restaurants, and retail all had weak months, partially offset by growth in telecoms, logistics, and legal firms," said Liz McKeown, ONS director of economic statistics.
