UK economy takes surprise dip in October

The UK economy shrank more than expected in October, according to the Office for National Statistics (ONS).

After a growth of 0.2% in September, economists were surprised by a 0.3% fall in GDP the following month which has been blamed on higher interest rates and bad weather such as Storm Babet.

Output in the services sector fell by 0.2% in October 2023 and was the largest contributing sector to the contraction in monthly GDP.

Household spending has been impacted by interest rate rises put in place by the Bank of England in an attempt to curb inflation. The Bank of England is expected to make its next decision on interest rates on Thursday 14 December 2023.

Despite the surprise dip, statistics for The Caterer's latest Hospitality Business Leader Survey suggests there is cause for optimism in 2023.

The survey produced in partnership with CGA by NIQ, reveals that 48% of respondents feel optimistic about the industry's prospects over the next 12 months, with less than half that number (21%) feeling actively pessimistic.