UK GDP shrinks in shock October slowdown

The news: UK GDP performed weaker than forecast in October, with all three main sectors (services, production and construction) showing declines in output.

The numbers: While GDP remained flat for the three months to October, monthly GDP in October contracted 0.3%. Analysts had projected a decline of 0.1% in the services sector, however the sector experience a stronger decline of 0.2%.

The context: The Bank of England is due to make its final rate decision for 2023 later this week, with most analysts expecting the central bank to hold rates steady at the 15 year high of 5.25%. The UK economy continues to struggle with high interest rates and inflation weighing on household incomes and businesses.