The UK economy recorded its first back-to-back declines in gross domestic product (GDP) since 2020, according to data released by the Office for National Statistics (ONS) on Friday.
GDP fell by 0.1% in October, mirroring the 0.1% decline observed in September. Analysts had expected modest growth of 0.1% for October, according to a consensus cited by FXStreet, but the figures underscored ongoing economic challenges.
The ONS attributed October’s weak performance primarily to a drop in production output. “Monthly services output showed no growth in October 2024 after also showing no growth in September 2024, but grew by 0.1% in the three months to October 2024,” the agency reported.
Production output fell by 0.6% in October, following a 0.5% decline in September. This downturn was driven by decreased activity in manufacturing as well as mining and quarrying. Over the three months leading up to October, production output contracted by 0.3%. The ONS noted that monthly production output in October was at its lowest level since May 2020.
Meanwhile, separate ONS data revealed a slight widening of the UK’s trade deficit. In October, the deficit expanded to £3.72 billion, compared to £3.46 billion in September and £3.47 billion in October 2023.
Exports increased by 1.0% to £68.88 billion in October, up from £68.20 billion in September, but imports rose at a faster rate of 1.3%, reaching £72.60 billion from £71.67 billion.
These figures highlight the ongoing struggles facing the UK economy, with persistent challenges in production and trade contributing to subdued economic performance.
