Breaking UK economy slipped into the red in October shrinking by worse-than-expected 0.3% as Jeremy Hunt warns inflation fight is ‘inevitably’ holding down GDP – with BoE poised to keep interest rates on hold tomorrow EnglishHeadline

The British financial system has slipped into the pink after heavy rain added to the hit from the value of residing disaster.

Official figures confirmed GDP was down 0.3 per cent in October – considerably worse than the 0.1 per cent analysts had pencilled in.

UK plc successfully flatlined over the previous three months, with Chancellor Jeremy Hunt warning that the wrestle to regulate inflation is ‘inevitably’ subduing exercise.

The Financial institution of England is about to make its newest determination on rates of interest tomorrow. Though Threadneedle Road is sort of sure to maintain the extent on maintain at 5.25 per cent, the poor financial efficiency may add to strain to convey ahead the timing of cuts. 

The estimate for October represents a pointy turnaround from the 0.2 per cent progress the Workplace for Nationwide Statistics (ONS) recorded in September.

The British financial system slipped into the pink in October after heavy rain added to the hit from the price of residing disaster

Chancellor Jeremy Hunt warned that the wrestle to regulate inflation is ‘inevitably’ subduing exercise

All three of the primary sectors fell into unfavourable territory for the primary time since July. 

ONS director of financial statistics Darren Morgan mentioned: ‘Our preliminary estimates recommend that GDP progress was flat throughout the final three months. Will increase in providers, led by engineering, movie manufacturing and training – which recovered from the affect of summer time strikes – had been offset by falls in each manufacturing and housebuilding.

‘October, nonetheless, noticed contractions throughout all three principal sectors.

‘Companies had been the largest driver of the autumn with drops in IT, authorized corporations and movie manufacturing – which fell again after a few robust months.

‘These had been additionally compounded by widespread falls in manufacturing and building, which fell partly as a result of poor climate.’

Mr Hunt put a constructive slant on the numbers in an announcement. 

‘It’s inevitable GDP will likely be subdued while rates of interest are doing their job to convey down inflation,’ he mentioned. 

‘However the massive reductions in enterprise taxation introduced within the Autumn Assertion imply the financial system is now effectively positioned to start out rising once more’