Rachel Clun<\/span>Business reporter<\/span><\/p>\n<\/div>\n <\/span><\/div>\n<\/div>\n The UK’s economy shrank unexpectedly in the lead up to the Budget, according to the latest official figures.<\/p>\n The economy contracted by 0.1% in October, the Office for National Statistics (ONS) said, whereas economists had been expecting it to grow by 0.1%. The economy also shrank by 0.1% in the three months to October.<\/p>\n The cyber-attack at Jaguar Land Rover continued to affect car production, with only a slight recovery in October from the previous month’s fall, while analysts said uncertainty ahead of the Budget had slowed consumer and business spending.<\/p>\n The weaker-than-expected figures strengthen the case for the Bank of England to cut interest rates at its meeting next week, analysts said.<\/p>\n<\/div>\n The government has made economic growth one of its key priorities.<\/p>\n A Treasury spokesperson said the government was working to boost economic growth through reducing energy bills and major infrastructure investments. <\/p>\n “We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services,” the spokesperson said.<\/p>\n Shadow chancellor Sir Mel Stride blamed the Budget for the unexpected contraction, saying it was “a direct result of Labour’s economic mismanagement”.<\/p>\n “For months, Rachel Reeves has misled the British public. She said she wouldn’t raise taxes on working people – she broke that promise again. She insisted there was a black hole in the public finances – but there wasn’t.”<\/p>\n Ruth Gregory, deputy chief UK economist at Capital Economics, said the surprise contraction in the economy was “a further reason to expect the Bank of England to cut interest rates next Thursday.”<\/p>\n “It’s striking that the economy has only grown in one of the past seven months,” she said.<\/p>\n Over the three months to October, production output shrank by 0.5%, largely driven by a 17.7% fall in vehicle manufacturing.<\/p>\n The cyber-attack on Jaguar Land Rover halted production at its plants across the UK for the whole of September, and there was a staged return to factory activity from early October<\/a>.<\/p>\n The resumption of vehicle manufacturing helped lift production output across the UK for that month, which grew by 1.1%.<\/p>\n However, the ONS noted the rebound in vehicle manufacturing had been small, as it was still well below levels seen in August. <\/p>\n The services sector, which makes up about three-quarters of the economy and includes areas such as professional services and retailing, <\/b>did not grow at all in the three months to October.<\/p>\n<\/div>\n![\"PA](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/89c8\/live\/cd5b88a0-d757-11f0-845f-035d2c9c25f7.jpg.webp\")
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