Politics LIVE: Rachel Reeves suffers fresh blow as recession fears explode | Politics | News

Rachel Reeves has been dealt a fresh blow as recession fears intensify after the economy shrinks once again.

GDP fell 0.1 percent in October, defying hopes for a recovery following a 0.1 percent decline in September and flatness in August.

Most economists were expecting a 0.1% increase for October, hoping for a rebound in manufacturing led by Jaguar Land Rover’s (JLR) recovery from a major hack.

Data shows the UK economy has not grown since June, with GDP either flat or falling over the past four months.

OUNCE Liz McKeown, Director of Economic Statistics, said: “The economy has contracted slightly over the last three months as manufacturing fell again and services growth stalled.

“On the manufacturing side, there was continued weakness in auto manufacturing, with the sector recording only a slight recovery in October from the significant production decline seen in the previous month.

“Overall, services showed no growth over the past three months, continuing the recent slowdown trend in this sector. There were declines in wholesale sales and scientific research, offset by increases in rental, leasing and retail sales.”

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