UK economy suffers first back-to-back declines since 2020

Business and Finance Business and Finance

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UK economy suffers first back-to-back declines since 2020

^{Published on 2024-12-13 08:01:19 - MSN}

Britain's economy shrank for a second month in a row in October in the run-up to the government's first budget, the first back-to-back falls in output since the onset of the COVID-19 pandemic, and a setback for new finance minister Rachel Reeves.

The UK economy experienced its first consecutive quarterly declines since the onset of the global health crisis in 2020, with GDP shrinking by 0.3% in the last quarter following a 0.1% drop in the previous three months. This downturn was influenced by a broad-based contraction across various sectors, including manufacturing, construction, and services. Notably, the services sector, which is the largest part of the UK economy, saw declines particularly in wholesale, retail, and motor trades, as well as in health and education, partly due to strikes. Despite these setbacks, there are signs of resilience with business investment showing growth, and some sectors like information and communication performing well. The economic contraction has raised concerns about the possibility of a technical recession, although the Bank of England and other economic forecasts suggest a potential rebound in the coming months.

Read the Full MSN Article at:
[ https://www.msn.com/en-gb/money/economy/uk-economy-suffers-first-back-to-back-declines-since-2020/ar-AA1vNIUX ]

N@N

UK economy suffers first back-to-back declines since 2020