Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “This isn’t the economic news we wanted as we approach the end of the year but it reflects some of the feelings many businesses had ahead of the Budget.

“And, while the Budget had few surprises and wasn’t what many had feared, we still need to see a real push for growth in 2026.

“The GDP may also mean the Bank of England will look to cut interest rates when it makes its final decision before the end of the year, which firms would welcome.

“Ultimately, the Government and decision-makers must do everything in their power to create the best possible conditions for businesses to invest in their people and new technology to help spark growth.

Stuart Morrison, research manager at the British Chambers of Commerce said: “There’s little festive cheer for businesses in the latest GDP data, as the economy unexpectedly shrank in both the three-month period and October itself. Firms are left waiting for an unlikely Christmas miracle on growth. 

“The data paints a particularly worrying picture on the services sector, which is usually a real strength of the UK economy. 

“The BCC’s latest economic forecast, published yesterday, shows 2026 will be another challenging year with limited growth, low levels of business investment, exports slowing and rising unemployment. 

“The Budget didn’t hit all firms with another general tax hike, but the Chancellor’s statement was a missed opportunity on growth levers. 

“Next year must be the moment the Government works with business to unlock growth, with a particular focus on both boosting trade and helping firms embrace AI. It’s also crucial that the welcome ideas in the recent industrial, trade and infrastructure strategies are delivered, rather than just remaining words on a page.”