(fxcue news) - In a blow to Chancellor Rachel Reeves, the UK economy grew only marginally in the third quarter on weak services output, data from the Office for National Statistics revealed Friday. Gross domestic product grew 0.1 percent sequentially, following growth of 0.5 percent in the second quarter and was also weaker than the forecast of 0.2 percent. The production-side of GDP showed that the dominant services sector grew marginally by 0.1 percent and industrial production shrank 0.2 percent from a quarter ago. Meanwhile, the construction sector expanded 0.8 percent. The 0.2 percent fall in production was driven by a 2.7 percent fall in electricity, gas, steam and air conditioning supply and a 0.9 percent drop in water supply; sewerage, waste management and remediation activities. However, manufacturing output was up 0.2 percent. On a yearly basis, economic growth improved to 1.0 percent in the third quarter from 0.7 percent in the preceding period. In September, GDP edged down 0.1 percent, in contrast to the 0.2 percent expansion in August, data showed. The economy was expected to grow again by 0.2 percent. Following the release of GDP data, Chancellor Rachel Reeves said, "Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers." Earlier this month, the Bank of England had reduced its benchmark rate by a quarter-point and signaled a gradual easing as the Autumn Budget is forecast to boost inflation. Month-on-month, industrial production slid unexpectedly by 0.5 percent in September but slower than the 0.7 percent drop in August. Output was expected to rise 0.1 percent. Manufacturing contracted 1.0 percent, partially offsetting the 1.3 percent rise in August. Economists had forecast nil growth. In a separate communiqué, the ONS today said the deficit on goods trade widened in September due to a sharp 12.6 percent decline in exports. At the same time, imports were down 6.3 percent. The visible trade deficit rose to GBP 16.3 billion from GBP 15.2 billion in the previous month. The total trade balance, covering both goods and services, registered a deficit of GBP 3.47 billion compared to a GBP 2.02 billion shortfall a month ago.