Dan Coatsworth, head of markets at AJ Bell, said: “The constant rumour mill about what might or might not be in November’s Budget caused consumers and businesses to put the brakes on spending in October.
“A worse than expected GDP figure is the result of a country going into a freeze, fearing that the Chancellor would hike taxes and leave less money in people’s pockets.
“There is a real chance that November’s GDP figure will be equally as gloomy given the Budget didn’t happen until the end of month.
“It’s a disastrous situation for Rachel Reeves, who put economic growth at the heart of her Budget plan.
“She will have hoped that the country ended the year on the front foot, with economic progression and optimism as we move into 2026.
“This lacklustre GDP data paints a very different picture.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.