UK Economy Contracts Again in October

2025-12-12 07:11 By Joana Taborda 1 min. read

The British economy unexpectedly contracted 0.1% mom in October 2025, following a similar decline in September and falling short of expectations for a 0.1% expansion.

This marks the fourth consecutive month without economic growth.

Services sector declined 0.3%, after a 0.2% gain in September, with the largest negative contributions coming from wholesale and retail trade and repair of motor vehicles and motorcycles (-4.3%) and computer programming, consultancy and related activities (-3.6%).

Construction was also down by 0.6% (vs a 0.2% rise in September), with the main negative contribution coming from private new housing (-2.4%).

On the other hand, the production sector increased 1.1%, rebounding from a 2% plunge, with growth seen in manufacturing (0.5%), mostly manufacture of motor vehicles and trailers (9.5%); mining (4.3%); electricity, gas, steam and air conditioning (2.1%); and water; sewerage, waste (1.5%).

Meanwhile, the GDP also contracted 0.1% in the three months to October.



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