The UK economy shrunk for the second month running in October, with official data showing a 0.1% fall.
Following a drop in September, it had been expected the economy would bounce back - but Office for National Statistics (ONS) data has now revealed a second consecutive drop.
The ONS said activity had stalled or declined with "weak month" reported by restaurants, pubs and retailers.
Chancellor Rachel Reeves, the BBC reports, said the figure was "disappointing", but added: "We have put in place policies to deliver long-term economic growth."
Meanwhile KPMG's chief economist Yael Selfin also reacted, suggesting activity had been "held back by uncertainty ahead of the Budget on 30 October".
Analysis from Capital Economics shows the UK economy has grown just once in the last five months and is now 0.1% smaller than before July's general election.
Capital's chief UK economist Paul Dales said: "That suggests it's not just the Budget that is holding the economy back," said
"Instead, the drag from higher interest rates may be lasting longer than we thought."