UK October GDP Expected to Show Slight Growth Amid Budget Uncertainty and Factory Restart
The UK economy is forecasted to experience a modest 0.1% growth in GDP for October, following a 0.1% contraction in September. The data, scheduled for release at 7am GMT, will indicate whether the economy returned to growth after the prior month's decline.
Manufacturing activity may receive a boost from the early October restart of Jaguar Land Rover factory operations, which had previously been disrupted by a cyber-attack. However, ongoing budget uncertainty ahead of the fiscal event in November is believed to be dampening consumer sentiment and business investment, potentially suppressing economic activity in October.
Analysts caution that monthly GDP figures tend to be volatile and noisy, meaning that signals should be interpreted with care. There is a possibility of stagnation if uncertainty around the budget persists. This GDP release is part of a broader effort to assess economic damage from pre-budget uncertainty, alongside other data releases and market responses.
