Britain's economy shrank unexpectedly by 0.1% in October, adding to signs of a bigger-than-expected slowdown in more bad news for finance minister Rachel Reeves, who described Friday's official data as "disappointing".

Economists polled by Reuters had forecast a monthly expansion of 0.1%.

The Office for National Statistics said the services sector flatlined, while output in the manufacturing and construction industries declined in October.

"While the figures this month are disappointing, we have put in place policies to deliver long term economic growth," Reeves said in a statement.

Her budget statement on Oct. 30 - whose direct impact will be felt in GDP data for November onwards - imposed large tax rises on businesses.

An ONS statistician said there was "mixed" anecdotal evidence for the budget impact, with some firms saying turnover had been affected by customers waiting for Reeves' announcement. Others brought forward activity.

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.

(Reporting by Andy Bruce; editing by Suban Abdulla and Sarah Young)