According to the latest data released by the Office for National Statistics on Wednesday, in October, the UK economy contracted by 0.3%, the first time British GDP had shrunk on a month by month basis since July.

The contraction followed September’s increase of 0.2%. The data featured weaker than expected  results for services, industrial production, and construction. Those three sectors, which had all declined together for the first time in five months, were the primary driver of the decline in GDP, due to the large proportion of the economy they make up.

Of most note, manufacturing declined by 1.1% as construction fell o.5% in October, as the services sector contracted 0.2%.

Consumer-facing services declined 0.1%, which left the sector performing 5% under its pre-pandemic levels. Other personal services activities delivered the largest negative contributions, as it declined 2.3%.

The report was released just before the Bank of England meets in its final meeting of the year to set rates. It is expected that on Thursday the regulator will elect to maintain rates unchanged at their 15-year peak of 5.25%.

On Wednesday, after the release of the GDP numbers, the British pound fell against the dollar by about 0.3% to $1.25, as traders placed bets on deeper rate cuts in the next year.

British households and businesses have been increasingly suffering under the effects of inflation and a growing cost of living crisis, as the threats of a recession have been growing.

The new GDP data highlights the difficulties regulators are facing as they seek to restrain inflation and the cost of living crisis, while also boosting the economy, and avoiding a recession.