AFP, London :
Britain’s economy shrank for the second consecutive month in October, official data showed Friday, dealing a blow to the Labour government that has made economic growth a priority.
Gross domestic product fell 0.1 percent in October compared with September, when output declined by the same amount, the Office for National Statistics (ONS) said.
The decline was unexpected by analysts, who had estimated that the economy would grow slightly.
“The figures this month are disappointing,” said finance minister Rachel Reeves, whose first budget in October featured big tax increases on businesses.
“We have put in place policies to deliver long-term economic growth,” she added.
Analysts have attributed part of the decline to uncertainty after the Labour government warned of “tough” measures in its budget at the end of October.
ONS director of economic statistics Liz McKeown said that “oil and gas extraction, pubs and restaurants and retail all had weak months”.
