The UK faces a bleak future with the Bank of England likely to cut interest rates, an expert has warned.
Jeremy Batstone-Carr, european strategist at Raymond James Investment Services, said: “Following the mild improvement in the September data, the latest GDP figures drop of 0.2 percent is a reminder that the gloomy outlook is here to stay.
“Dark clouds and early sunsets have dampened consumer spirits, which remain bruised by the continuing cost of living crisis.
“Today’s announcement should serve as a spoiler of further muted economic activity to come in the new year, particularly as the lagged impact of earlier rate hikes are still working their way into the economy.
“The industrial and manufacturing sectors remain subdued, as does retail, while demand for gas paired with weak production has led to a net negative outcome for the mining sector.
“The global economy remains equally tarnished, creating a challenging situation for the UK’s export activity, as demonstrated by a widening trade deficit.
“These figures come ahead of the Bank of England’s next base rate announcement, and though price pressures are easing, today’s weak data is unlikely to be enough to encourage the Bank to lower its vigilance and cut base rates.”
