UK Economy Contracts by 0.1% in October Contrary to Forecasts
The UK economy shrank by 0.1% in October, according to data released by the Office for National Statistics (ONS) on 12 December 2025. This contraction was unexpected, as economists polled by Reuters and others had forecast a 0.1% growth for the month. The three-month rolling GDP growth to October also fell by 0.1%.
The decline was driven by a 0.3% drop in services and a 0.6% decrease in construction, while production grew by 1.1%. However, within production, manufacturing output was weak, with car manufacturing showing only a slight recovery after a significant decline the previous month. Services growth stagnated, contributing to the overall economic weakness.
The results come amid concerns about restrained consumer spending ahead of the budget and apprehensions regarding the chancellor's measures affecting households. Liz McKeown, the ONS director of economic statistics, noted the surprising contraction in October despite expectations of growth.
