Britain’s economy shrank unexpectedly by 0.1% in October, official data showed on Friday. Economists polled by Reuters had forecast a monthly expansion of 0.1%.

Last month, the BoE trimmed its annual growth forecast for 2024 to 1% from 1.25% but predicted a stronger 2025 with 1.5% growth, reflecting a short-term boost to the economy from the big-spending budget plans of finance minister Rachel Reeves.

Britain’s economic output has grown slowly since the COVID-19 pandemic. Only Germany, which was also hit hard by surging energy costs after Russia’s invasion of Ukraine, has done noticeably worse among the largest advanced economies.

Earlier this month Prime Minister Keir Starmer confirmed that it was his ambition for Britain to have the fastest per capita growth in gross domestic product among the Group of Seven advanced economies.