The UK economy shrank by 0.3% in October, following 0.2% growth in September.
Heavy rainfall and strong winds contributed to the decline in output, the Office for National Statistics (ONS) said.
The services, manufacturing and construction sectors all contracted but services were the biggest driver of October’s fall, with declines in IT, legal services and film production. These were compounded by widespread falls in manufacturing and construction, partly due to the poor weather.
Chancellor Jeremy Hunt said it was “inevitable” that gross domestic product (GDP) growth would be subdued while “interest rates are doing their job to bring down inflation”.
Across the three months to October, GDP was flat.
Responding to the data, the Resolution Foundation said that the UK is a “stagnation nation”, with the past 18 months seeing just 0.5% growth — the weakest on record outside of a recession.
Achieving “stronger, sustained economic growth” is the only way to boost living standards, said James Smith, research director of the think tank.
