Commenting on ONS data that showed monthly GDP to have fallen by 0.3% in October 2023, following growth of 0.2% in September 2023, and no growth in the three months to October 2023 when compared with the previous three months, Dr Roger Barker, Director of Policy at the Institute of Directors, said:

“There is very little of comfort in the latest GDP figures. The emerging picture is one of a sinking economy. The possibility that we will move into recession next year has increased.

“October was an exceptionally wet and windy month. So, declining output in sectors like construction, retail and hospitality was not entirely unexpected.

“However, declines in service sectors such as computer programming, consultancy and the media may be suggestive of more persistent economic weakness.

“Although the labour market remains tight, the emerging economic picture points to a need for the Bank of England to start cutting interest rates sooner rather than later. We hope that it does not delay its policy response too long as it did at the beginning of the current cycle.”