Posted 12/13/2023, 7:32:00 AM
UK Economy Shrinks More Than Expected in October as High Rates Bite
- UK GDP contracted by 0.3% in October, more than expected, as high interest rates hit households
- Services, production, and construction all declined, with falls in IT, legal, film production, manufacturing and housebuilding
- Comes ahead of Bank of England decision on interest rates; expected to hold at 5.25%
- Chancellor says high rates will subdue growth temporarily but tax cuts in Budget will enable recovery
- Economists warn high rates could cause recession; TUC says UK is "dangerously close" amid rising unemployment and falling living standards