British Economy Continues to Contract for a Second Month Despite Recovery Hopes

The British economy continued to contract for a second consecutive month, signaling persistent pressure on economic activity despite earlier expectations of a modest rebound.

Official data showed that weak manufacturing performance, particularly in the auto sector, weighed heavily on output.

The British economy posted a slight decline in gross domestic product in October, following a similar drop in the previous month, defying forecasts that had pointed to marginal growth supported by a recovery at major industrial firms.

Data indicate that the British economy has failed to record meaningful growth since midyear, with GDP remaining flat or shrinking over the past four months, underscoring subdued momentum and fragile demand.

Meanwhile, many companies reported slower activity in the period leading up to the government’s budget announcement, as uncertainty over potential tax measures weighed on business confidence and spending decisions.