UK economy shrinks 0.3% in October as third quarter growth remains flat

Economy weaker than forecast

UK GDP shrank 0.3% in October, driven by a 0.2% decline in services, leaving the third quarter with flat growth.

This decline has left GDP just 0.3% larger than it was in October 2022, the Office for National Statistics said today (13 December). Economists had anticipated there would be no change in GDP following a 0.2% growth in the prior month. Services output was the main contributor to the fall in GDP throughout the month, due to its large size in the economy, while production output fell 0.8% and the construction sector fell 0.5%. CBI forecasts no Bank of England rate cuts until at least 2026 Within the services sector, information and communication was the largest contributor to the fal...