United Kingdom: Economy flatlines in October on shrinking construction sector
According to monthly GDP data released by the Office for National Statistics (ONS), economic activity was unchanged in October over the previous month in seasonally-adjusted terms (September: -0.1% month-on-month), undershooting market expectations of a small expansion. In the three months to October, the economy also flatlined, down from the 0.3% expansion recorded in July–September. Political uncertainty and mild growth in the Eurozone likely weighed on activity.
October’s sluggish reading was driven by a sharp decline in the construction sector. In contrast, the industrial and service sectors eked out small expansions.
Looking forward, our panelists see the economy remaining subdued over the next few quarters before picking up pace towards the end of 2020, likely on some reduction of Brexit uncertainty.