UK's Economy Records First Three-Month Contraction Since 2023

The UK economy slipped in the three months to October 2025, with real GDP falling 0.1%, marking the first three-month fall since December 2023. This decline comes after the economy saw a 0.1% growth in the three months to September and 0.2% in the three months to August. while production output fell by 0.5% due to a decline in motor vehicle manufacturing. The slowdown was driven by a 0.5% fall in production output, largely because of a 17.7% drop in motor vehicle, trailer and semi-trailer manufacturing. Construction also declined by 0.3%, while services sector remained flat. On a monthly basis, GDP fell 0.1% in October, matching September's decline and following no growth in August. Services dropped 0.3% and construction fell 0.6%, while production rose 1.1%. The Bank of England could consider the country’s weak GDP performance as a reason to lower interest rate.