UK Economy Shrinks 0.1% Before Budget, Unexpected Weakness

• UK economy contracted by 0.1% in the three months to October, missing zero growth expectations.
• Key sectors including services, construction, and production experienced stagnation or decline.
• The economic downturn follows the Chancellor's recent announcement of tax hikes to address financial challenges.
• This data suggests ongoing difficulties for the UK economy and could influence the Bank of England's interest rate decisions.
• The Bank of England's Monetary Policy Committee is scheduled to meet on December 18, with a potential 0.25% rate cut anticipated.

Why It Matters: Weak UK economy data suggests recession risk, affecting financial outlook and policy.