UK gross domestic product (GDP) fell by 0.1% month-on-month in October, according to the Office for National Statistics, defying City expectations of a 0.1% increase.
The latest data follows a 0.1% contraction in September and flat growth in August, signalling a continued period of economic stagnation.
The ONS said the decline was driven by weakness in the services and construction sectors.
Services output fell by 0.3% during the month, while construction activity declined by 0.6%.
This was partially offset by a 1.1% increase in production, which provided the only area of growth.
On a rolling three-month basis to October, GDP also fell by 0.1%, reinforcing the picture of a subdued economy heading into the final quarter of the year.
The figures suggest momentum has remained weak despite expectations that activity would stabilise after the summer.
Jonathan Moyes, head of investment research at Wealth Club, said: “The Government and the Chancellor spent much of their time sapping what little confidence the UK economy had left in October.
“So it is not unsurprising to see the economy not only stagnate, but contract in the month before the budget.
“Confidence is a key ingredient for a thriving economy, it is a shame to see it given away so freely to mask political choices.
“For comparison, US GDP growth in Q3 is expected to come in at a blistering 3.8%. The UK is firmly in the global slow lane.
Looking ahead, a well known saying springs to mind, “to understand a country’s future, look at its youth”, well, within the UK it’s young are leaving by their hundreds of thousands.”
