The United Kingdom economy unexpectedly contracted in October, with Gross Domestic Product falling by 0.1%, according to the Office for National Statistics on Friday.
The decline was attributed to a drop in production output.
Economists surveyed by Reuters had forecast a 0.1% increase in GDP for the month.
This marks the U.K.’s second consecutive economic downturn, following a 0.1% GDP decline in September.
However, real GDP is estimated to have grown by 0.1% in the three months leading up to October, compared to the previous quarter ending in July, according to the ONS.
Sterling weakened following the disappointing data, falling 0.3% against the U.S. dollar to $1.2627 by 7:45 a.m. London time.
In response, U.K. Finance Minister Rachel Reeves acknowledged the October figures were “disappointing” but defended the government’s contentious economic policies.
