UK Economy Contracts for Second Month in October

The UK economy contracted for the second consecutive month in October, with a 0.1% decline reported by the Office for National Statistics (ONS). This downturn follows a 0.1% drop in September and comes as Prime Minister Sir Keir Starmer's Labour government marks its first 100 days in office amid growing public concern over economic management. The services sector, which dominates the economy, recorded no growth, and sectors such as construction and retail reported weak performance. Chancellor Rachel Reeves acknowledged the disappointing figures but highlighted the government's commitment to long-term economic growth through new policies. Analysts suggest that uncertainty surrounding the budget, which proposed £40 billion in tax increases, may further dampen business confidence and spending. The Bank of England is expected to maintain interest rates at 4.75% despite the economic contraction, as concerns grow over the impact of higher borrowing costs.