Analyst: UK economic contraction for the second consecutive month has sounded the alarm

Data from Jin10 on December 13th: Analyst Danni Hewson from AJ Bell stated in a report that one month of data does not tell the whole story, but it’s worth following when the UK economy shrinks for two consecutive months, as it did in September and October. The last time the economy contracted for two consecutive months was during the first wave of the pandemic in 2020. She stated that the uncertainty before the government budget may cause individuals and businesses to avoid spending in anticipation of potential tax increases. Bars, restaurants, and the arts industry were hit hard in October. Hewson said that discretionary spending like this can easily be cut. In addition, looking back at the past six months, except for August, economic activity was flat or declining each month.