The UK economy contracted by more than expected in October, falling by 0.3%, signalling challenges for both consumers and businesses.
The setback follows a modest growth of 0.2% in September, with many economists predicting the economy would only shrink by 0.1% in October.
October's economic downturn can be largely attributed to the higher interest rates implemented by the Bank of England to combat inflation. Households have felt the squeeze on spending, contributing to the overall economic contraction.
Interest rates currently stand at a 15-year high of 5.25%, and their impact on borrowing costs is likely to persist.
Severe weather conditions, particularly the onslaught of Storm Babet in October, also took a toll on the economy, with the retail and tourism sectors bearing the brunt of adverse weather.
Most economists had initially predicted a milder contraction of 0.1% for the month, but the reality proved harsher as the services, manufacturing, and construction sectors all contracted.
Chancellor of the Exchequer, Jeremy Hunt, said:
"It is inevitable GDP will be subdued whilst interest rates are doing their job to bring down inflation".
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