UK gross domestic product (GDP) dropped by 0.1% month-on-month in the three months to October, following 0.1% and 0.2% increases in the three months to September and August respectively.

The Office for National Statistics (ONS) reported that monthly GDP also dropped by 0.1% in October, compared to a drop of 0.1% in September and no growth in August 2025.

Across the economy, services output experienced no growth in the three months to October, while construction output dropped by 0.3% in the same period.

The ONS reported that production saw the largest drop in output, falling by 0.5% in the three months to October, largely because of 17.7% fall in the manufacture of motor vehicles, trailers and semi-trailers in this period.

This follows a fall of 0.5% in production output in the three months to September.

Savings expert at Scottish Friendly, Kevin Brown, said that the latest GDP figures are "a blow" to the economy, as higher taxes, a weakening job market and fragile business confidence are beginning to take their toll.

He concluded: "Unfortunately, the outlook doesn’t look any more encouraging. More contemporary data sets, such as the latest PMI figures, show that private sector output was virtually flat in November, following a noticeable slowdown in the UK’s dominant services sector. That’s a concern and suggests a fairly disappointing and muted end to 2025 is in store.

"Barring a surprise uplift in inflation or wage growth, we believe it’s now almost certain that the Bank of England will cut rates by 25 basis points when its rate-setting committee meets later this month.

"That means savers should use the time they have to shop around for the best rates because they will soon disappear if the BoE does act. For those prepared to take a longer-term view, investing in the stock market remains the most reliable way to generate higher returns and outpace inflation."

---