The United Kingdom’s Gross Domestic Product (GDP) contracted 0.1% in October compared to September, due to a decline in the services sector and construction, the Office for National Statistics (ONS) reported today.
GDP had also fallen by 0.1% in September compared to the previous month and stagnated in August compared to July, according to ONS data.
In October, the services sector, considered the economic lung of the United Kingdom, contracted by 0.3% and the construction sector suffered a fall of 0.6%, but the industrial sector grew by 1.1%.
Car manufacturing continued to show weakness, and the overall industrial sector “recovered only slightly in October from the substantial fall in production seen in the previous month”, noted ONS statistics director Liz McKeown.
However, compared to the same month in 2024, UK GDP is estimated to have increased by 1.1% in October 2025.
In turn, British GDP fell 0.1% in the quarter to October, compared to the three months to July 2025, after expanding 0.1% in the quarter to September 2025 and 0.2% in the quarter to August 2025.
This is the first quarterly drop in real GDP since December 2023.
Last month, the Bank of England maintained key interest rates at 4%, the lowest level in more than two years, as it assessed that inflationary pressures persist.
Inflation has reached its peak and the risk of continued inflation has decreased, according to the bank, which is paying attention to the evolution of the Consumer Price Index (IPC), which in October was 3.6%, above the entity’s target of 2%.