This follows on from no growth in August, which was revised down from the original figure of a 0.1% rise, according to the Office for National Statistics (ONS).
The ONS noted that production decreased by 2% in the month to September, whereas construction and services both grew by 0.2%. It said the fall in production was largely due to a decrease in the manufacture of motor vehicles, trailers and semi-trailers – which alone was responsible for a negative contribution of 0.17 percentage points to the GDP drop in September.
However, there was a slight boost to quarterly real GDP, as it grew by 0.1% in July to September this year, compared to growth of 0.3% in Q2.
Additionally, the quarterly growth for Q3 2025 is estimated to be 1.3% higher versus Q3 2024.
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GDP data is ‘lacklustre’
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “The UK economy expanded 0.1% in the third quarter – a slower pace of growth compared to the 0.3% uplift seen in Q2 – and contracted by 0.1% in September as rising employment costs, sticky inflation, a cooling labour market and geopolitical uncertainty weighed on business and consumer sentiment.
“The lacklustre GDP data will deliver a blow to Chancellor Rachel Reeves as she makes the final tweaks to her Autumn Budget in less than two weeks’ time. It will also do little to ease the financial strain facing households. Reeves has warned that tax rises are inevitable and that everyone ‘must do their bit’ to help restore the public finances – a message likely to send shivers through households already grappling with higher bills and tighter budgets.”
