UK economy shrank unexpectedly in October

The UK’s economy shrank unexpectedly in October, according to the latest official figures.

The economy contracted by 0.1%, the Office for National Statistics (ONS) said, whereas economists had been expecting it to grow by 0.1%.

Over the three months to the end of October the economy also shrank by 0.1%, as manufacturing output fell and services growth stalled, the ONS 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,” ONS director of economic statistics Liz McKeown said.

A Treasury spokesperson said the government was working to boost economic growth though reducing energy bills and major infrastructure investments.

“We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services,” the spokesperson said.

Over the three months to October, production output shrank by 0.5%, largely driven by a 17.7% fall in vehicle manufacturing.

The cyber-attack on Jaguar Land Rover halted production at its plants across the UK for the whole of September, and there was a staged return to factory activity from early October.

The resumption of vehicle manufacturing helped boost production output across the UK for that month, which grew by 1.1%.