The country’s GDP declined again in October, marking the only month-on-month contraction since the beginning of the COVID-19 pandemic.
New graphs have revealed a flatlining economy. (Image: Getty)
Rachel Reeves has been dealt a fresh blow as damning new graphs reveal the UK’s flatlining economy and decline in multiple industries since Labour has been in government.
The new data, released today by the Office for National Statistics (ONS), shows the economy shrinking for a second month in a row in October, despite analysts previously predicting 0.1% growth.
The period covers the four weeks prior to Reeves’ highly controversial Budget and marks the first back-to-back decline since the start of the COVID-19 pandemic.
Gross domestic product (GDP) – the value of goods and services produced by a country – fell by 0.1% between August and September, and another 0.1% between September and October.
Since Labour won the election in July, the economy has stagnated or declined every month except August, which puts pressure on the Bank of England to reduce interest rates in order to stimulate the economy and increase consumer spending.
GDP dropped for two months in a row for the first time since the onset of the pandemic. (Image: ONS)
Looking closer at the ONS figures, they reveal that production, construction, and the services sector all declined during the same period.
Factories and mining firms are also becoming less economically viable; both experience output production delcines of 0.6% after a 0.5% shrinkage in September.
Construction companies’ output also declined by 0.4%, which may make reaching Labour’s taregt of building 1.5 million new homes across the country even harder to reach.
Reeves was forced to respond to the “disappointing” figures, realsing a statement maintaining her government has a plan for “long-term economic growth”.
The production, construction, and services sectors all declined in October. (Image: ONS)
She said: “While the figures this month are disappointing, we have put in place policies to deliver long-term economic growth.”
The Tories were quick to hit back at the recent economic downturn under the new Labour government, accusing Reeves of poor decision making.
Mel Stride, the party’s spokesperson on the economy, said: “It is no wonder businesses are sounding the alarm. This fall in growth shows the stark impact of the chancellor’s decisions and continually talking down the economy.”
