December cut to UK interest rates ‘nailed on’ after economy shrinks unexpectedly by 0.1% in October – as it happened

Disappointing UK GDP report shows economy contracted by 0.1% in both September and OctoberToday’s GDP report also shows the economy only grew by 1.1% over the last year – a weak performance.The ONS says:GDP is estimated to have grown by 1.1% in the three months to October 2025, compared with the same three months a year ago. Over this period services grew by 1.5% and construction grew by 1.1%, whereas production fell by 1.3%.GDP is estimated to be 1.1% higher in October 2025, compared with October 2024.“The economy contracted slightly in the latest three months, as production fell again and services growth stalled. “Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month. “Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail.” Continue reading...