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UK Economy Shrinks Again: October GDP −0.1% Surprise Pours Cold Water on Recovery Hopes

Looks like the UK economy shrank for the second month straight in October 2025. GDP was down 0.1%, when everyone thought it would be up 0.1%. September wasn't great either, down 0.1% after revisions. So, that little boost after the election? Gone. Now the UK's recovery looks shaky going into winter.

If you look closer, things are weak all over. Manufacturing and production were down 2% in September and kept going down. Services and construction didn't really help much. The growth rate over three months barely hit 0.1%, and yearly growth is just 1.1%. Not much is going on as we head toward the end of the year.

Now, people think the Bank of England might cut rates as soon as February 2026. This bad news probably won't help the pound get stronger any time soon, and bond yields will probably drop. Unless things get way better in November and December, the UK is heading for almost no growth at all at the end of 2025. It just confirms things are pretty stagnant.

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