Office for National Statistics annual GDP report for 2024

UK Economy Shrinks 0.1% in October; Manufacturing Output Falls 0.6%, Reeves Calls Data 'Disappointing'

Dec 13, 2024, 07:08 AM

Britain's economy unexpectedly contracted by 0.1% in October 2024, marking the second consecutive monthly decline, according to the Office for National Statistics. Economists had anticipated a 0.1% growth for the month. The contraction was driven by falls in manufacturing output, which decreased by 0.6% month-on-month, industrial production, down 0.6% (versus expected growth of 0.3%), and construction output, which declined 0.4%. Services showed no growth in October. On a year-on-year basis, GDP grew 1.3%, falling short of the anticipated 1.6% growth. Chancellor Rachel Reeves described the GDP figures as 'disappointing' but stated that policies are in place to deliver long-term economic growth. The UK economy has now contracted in two consecutive months, raising concerns about the government's growth agenda.