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UK GDP falls again by 0.1% in October sequentially

The GDP had also declined by 0.1% in September compared to the previous month and stagnated in August compared to July, according to data from the ONS.

In October, the services sector, considered the economic powerhouse of the United Kingdom, contracted by 0.3%, and the construction sector fell by 0.6%, but the industrial sector grew by 1.1%.

Automobile manufacturing continued to show weakness, and the industrial sector overall “recovered only slightly in October from the substantial production decline observed in the previous month,” noted ONS’s director of statistics, Liz McKeown.

However, compared to the same month in 2024, it is estimated that the UK’s GDP increased by 1.1% in October 2025.

Meanwhile, British GDP fell by 0.1% in the quarter to October, compared to the three months to July 2025, following a 0.1% expansion in the quarter to September 2025 and a 0.2% expansion in the quarter to August 2025.

This marks the first quarterly decline in real GDP since December 2023.

Last month, the Bank of England kept the key interest rates at 4%, the lowest level in over two years, as it assessed persistent inflationary pressures.

Inflation had peaked and the risk of continued inflation decreased, according to the bank, which is monitoring the Consumer Price Index (CPI) that was 3.6% in October, above the entity’s target of 2%.

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