UK Economy Faces Challenges as Signals Flash Red and GDP Shrinks Amid High Interest Rates

The UK economy contracted by 0.3% in October, following a 0.2% rise in September, raising concerns about a potential recession. While some analysts believe it is a temporary decline before a rebound, the broad-based nature of the contraction across all major sectors suggests otherwise. The lack of film and TV production, a slowdown in demand from China, and a lack of direction in industrial strategy from the UK government are contributing factors. The construction industry and professions dependent on the property market are also at risk. The Bank of England is expected to keep interest rates steady, prioritizing inflation control over a shallow recession.