Alarm bells over the prospect of recession have been raised after the UK economy faced another month of contraction in October.
Institute of Economic Affairs fellow Julian Jessop noted the drop “should put the UK firmly on recession watch”.
ONS estimates showed a 0.1% decline in gross domestic product (GDP) through October as production and construction output contracted and service sector growth stagnated.
GDP had also fallen by 0.1% in September, with growth up 0.1% over the three months to October, but questions are being raised over the path of the economy heading into the end of the year.
“Indeed, output per head may already be falling for the second quarter in a row,” Jessop said.
Though the service sector as a whole did not contract, the figures showed pubs and restaurants faced a tough month as food and beverage service output fell 2.0%.
Tax hikes in October's Budget were cited as weighing on the outlook ahead for the economy as a whole, with the likes of pubs having joined growing warnings over hikes to employer national insurance on growth.
"The new government’s negative rhetoric over the summer and the anticipation of a tight Budget have damaged sentiment and encouraged many households and businesses to put spending, hiring and investment on hold," Jessop added.
Deutsche Bank analysts echoed the view, warning there was “probably more bad news on the horizon”.
“Budget uncertainty has hit demand and sentiment,” Deutsche said, while poor weather ahead of Christmas was also likely to weigh.
“Storm Bert and Storm Darragh will have likely disrupted output meaningfully in November and early December with both storms bringing strong winds, floods, snow, and precipitation that will hit activity.”