UK Economy Shrinks for Second Month

The UK economy contracted for the second consecutive month in October, marking the first back-to-back declines since the onset of the COVID-19 pandemic. Gross domestic product (GDP) fell by 0.1%, following a similar drop in September, while economists had anticipated a slight growth of 0.1%. The services sector showed no growth, with significant declines in consumer-facing industries like pubs and restaurants. Chancellor Rachel Reeves expressed disappointment but emphasized the government's commitment to long-term economic growth through proposed policies. The economic slowdown poses challenges for Prime Minister Keir Starmer's Labour government, which has seen only one month of growth since taking office. Rising costs in mortgages and energy, coupled with global economic uncertainties, further complicate the situation.