The economy remained in reverse gear during October, according to official figures covering the month ahead of the government’s first budget.
The Office for National Statistics (ONS) said output fell 0.1% following the 0.1% decline recorded for the previous month.
It marked the first time since the COVID pandemic that the economy had shrunk for two consecutive months.
The figures showed zero growth in the powerhouse services sector, with manufacturing and construction declining at a pace of 0.6% and 0.4% respectively.
Economists had expected a positive headline figure.
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The data adds to the picture of a far more jittery economy during the second half of the year, in the wake of the general election.
Critics blame the government, accusing Sir Keir Starmer and his chancellor Rachel Reeves of a spectacular, early, own goal that spooked the public and businesses alike.
After three weeks in office, both warned of a “tough” budget to come on 30 October due to an inherited “£22bn black hole” in the public finances that a snap Treasury review had uncovered.
The allegation from the Conservatives was that the figure was a fantasy, cooked up to justify a Labour spending spree they had planned all along but kept secret during the election.
There has been strong evidence since July of a hit to sentiment as a result of the budget warning, in data covering things like consumer spending and wage awards.
