UK economy shrinks by 0.1% in shock fall
Most economists had been expecting a rise of 0.1% for October
The UK's economy contracted for the second month running in October, defying expectations for a rebound as car manufacturing only made a slight recovery from the Jaguar Land Recovery cyber attack.
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The Office for National Statistics (ONS) said gross domestic product (GDP) fell 0.1% in October, following a 0.1% decline in September.
Most economists had been expecting a rise of 0.1% for October on hopes of a manufacturing bounceback led by Jaguar Land Rover's (JLR) recovery from a major hack.
The data shows the UK economy has now not grown since June, with GDP either flat or falling in the past four months.
Many businesses have recently indicated that activity in the economy slowed in the lead up to the Budget, delivered on November 26, as speculation over possible tax measures grew.
ONS director of economic statistics Liz McKeown 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."
A Treasury spokesperson said: "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.
"That is why the Chancellor is taking £150 off energy bills, protecting record investment in our infrastructure, and we are backing major planning reforms, the expansion of Heathrow and Gatwick airports, and the construction of Sizewell C."
'Economic mismanagement'
Shadow chancellor Sir Mel Stride blamed the Budget for the unexpected economic contraction.
The senior Conservative shadow minister said: "This morning's news that the economy unexpectedly shrank in the three months to October is extremely concerning but it's as a direct result of Labour's economic mismanagement.
"Rachel Reeves promised growth but Labour has no plan for the economy - just their own survival, that's why Reeves presented a benefits budget that rewards welfare, not work.
"For months, Rachel Reeves has misled the British public. She said she wouldn't raise taxes on working people - she broke that promise again. She insisted there was a black hole in the public finances - but there wasn't."