UK GDP report released<\/p>\n
Newsflash: The UK economy grew by 0.1% in the final quarter of 2025.<\/p>\n
That\u2019s a little slower than many economists had expected, with the services sector stagnating during the October-December period, and follows a 0.1% increase in the previous quarter.<\/p>\n
The Office for National Statistics says:<\/p>\n
In output terms, growth in the latest quarter was driven by an increase of 1.2% in production, while the construction sector fell by 2.1% and the services sector showed no growth.<\/p>\n
More to follow\u2026<\/p>\n
Share<\/a><\/p>\n Updated at\u00a002.23 EST<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n UK ‘ended 2025 firmly in the slow lane’ – what the experts say<\/p>\n Reaction to the news that the UK grew by just 0.1% in the final quarter of 2025 (see earlier post<\/a>) is rolling in, and City experts aren\u2019t impressed.<\/p>\n Lindsay James, investment strategist at wealth managers Quilter, warns that the picture is \u2018rather bleak at the moment\u2019.<\/p>\n \u201cA long list of data revisions from the ONS has revealed the UK economy barely kept its head above water in the final quarter of last year, with GDP growth coming in at just 0.1% after downward revisions to the previous two data prints. December saw a meagre uplift of 0.1%, which was in line with expectations, but November\u2019s growth has been revised down to 0.2% from the 0.3% first reported.<\/p>\n \u201cThe Christmas period was weak by historical standards, and that is laid bare in today\u2019s data. The services sector, which had previously been noted as the largest contributor, showed no growth and its impact was revised down from 0.2% to nothing in the three months to November too. Surprisingly, production output grew by 1.2%, having fallen by 0.1% in the three months to November, but it was outweighed by a fall of 2.1% in the construction sector which followed a 0.9% fall previously.<\/p>\n Scott Gardner, investment strategist at JP Morgan Personal Investing says the economy failed to hold onto the stronger growth seen in early 2025:<\/p>\n \u201cThe UK economy ended 2025 firmly in the slow lane, undershooting expectations and remaining in a low gear in the final quarter of the year as businesses and consumers digested the Chancellor\u2019s November Budget. This marks a clear reversal in fortunes for the economy after strong growth shown in the first half of the year failed to carry over into the rest of 2025.<\/p>\n \u201cMany will be hoping that the slow pace of economic expansion in the final quarter is only temporary after the Jaguar Land Rover shutdown stunted growth in the Autumn and led to a sharp fall in productivity. Services performed well over December, but construction and industrial production activity declined. Consumer spending showed more promising signs and has bounced back as real wage growth has fed through into higher retail and online spending.<\/p>\n Photograph: ONS<\/p>\n The Unite union are calling for more investment to lift growth; their general secretary Sharon Graham says:<\/p>\n \u201cToday\u2019s figures are further proof that the UK economy will not get the growth we were promised until we reverse our historic levels of underinvestment.<\/p>\n \u201cThe figures also show that real household disposable income fell in 2025. Families up and down the country are getting poorer in real terms.<\/p>\n \u201cWe need to stop the rot and start delivering for everyday people.\u201d<\/p>\n Share<\/a>Real GDP per head grew in 2025, but….<\/p>\n Real GDP per capita, a key measure of living standards, picked up last year after stagnating in 2024, today\u2019s GDP report shows.<\/p>\n The Office for National Statistics reports that real GDP per head is estimated to have increased by 1.0% annually in 2025, following no growth in 2024.<\/p>\n However, real GDP per head is estimated to have fallen by 0.1% in October-December, the second consecutive quarterly fall.<\/p>\n Real GDP per head adjusts for changes in population levels, so is a better measure of whether people are actually getting better off.<\/p>\n A chart of UK GDP per head Illustration: ONSShare<\/a>ONS: Economy continues to grow slowly<\/p>\n Here\u2019s ONS director of economic statistics Liz McKeown on this morning\u2019s news that the UK economy grew by 0.1% in October-December<\/a>:<\/p>\n \u201cThe economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter.<\/p>\n \u201cThe often-dominant services sector showed no growth, with the main driver instead coming from manufacturing. Construction, meanwhile, registered its worst performance in more than four years.<\/p>\n \u201cThe rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.<\/p>\n \u201cInitial estimates show GDP per head was up on the previous year despite it contracting slightly in each of the last two quarters.\u201d<\/p>\n Share<\/a>UK economy grew 0.1% in December, November revised down<\/p>\n The UK economy also grew by 0.1% in December alone, the first month after Rachel Reeves\u2019s budget.<\/p>\n But there\u2019s bad news in the monthly data \u2013 November\u2019s growth has been revised down to 0.2%, from the first estimate of 0.3%. The economy still shrank by 0.1% in October.<\/p>\n In December, Services grew by 0.3%; production fell by 0.9% and construction output dropped by 0.5%.<\/p>\n Share<\/a>Annual growth picks up<\/p>\n On an annual basis, the UK economy picked up a little speed in Labour\u2019s first calendar year in office.<\/p>\n GDP is estimated to have increased by 1.3% annually in 2025, up from growth of 1.1% in 2024.<\/p>\n That\u2019s still relatively weak by historic standards.<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.08 EST<\/p>\n UK GDP report released<\/p>\n Newsflash: The UK economy grew by 0.1% in the final quarter of 2025.<\/p>\n That\u2019s a little slower than many economists had expected, with the services sector stagnating during the October-December period, and follows a 0.1% increase in the previous quarter.<\/p>\n The Office for National Statistics says:<\/p>\n In output terms, growth in the latest quarter was driven by an increase of 1.2% in production, while the construction sector fell by 2.1% and the services sector showed no growth.<\/p>\n More to follow\u2026<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.23 EST<\/p>\n With less than five minutes to go until the big GDP reveal, here\u2019s Sandra Horsfield of Investec Economics on the UK\u2019s growth performance\u2026..<\/p>\n \u201cThe big picture is that the UK economy had defied the gloomy popular narrative and outperformed expectations during 2025 – our forecast equates to GDP growth of 1.4% for the full year, whereas the consensus forecast in January 2025 had been for 1.2% GDP growth.<\/p>\n \u201cWe project a similar story of resilience and outperformance relative to consensus for 2026, as utilities investment and, eventually, housebuilding accelerate – the latter with a little help from further falls in interest rates too.<\/p>\n \u201cThe consensus forecast for this year is 1%, against our own forecast of 1.3%.\u201d<\/p>\n Share<\/a><\/p>\n Ahead of the UK growth report, we have \u201ctentative signs\u201d that the housing market in England and Wales is recovering from a months-long slowdown.<\/p>\n The Royal Institution of Chartered Surveyors (Rics) said its members were feeling more optimistic about the year ahead than at any time since December 2024, as inquiries from new buyers, agreed sales and house prices became less negative in January.<\/p>\n More here<\/a>.<\/p>\n Share<\/a><\/p>\n City economists are split about what to expect at 7am.<\/p>\n A Reuters poll found that forecasts for growth in the final three months of 2025 range from 0% to 0.2%.<\/p>\n Robert Wood, chief UK economist at Pantheon Macroeconomics, said GDP growth \u201ccould tip to 0.2%\u201d in Q4 thanks to a pick-up in the services sector, but is predicting 0.1%.<\/p>\n Wood explains:<\/p>\n \u201cWe think the broad thrust from activity in the services sub-sectors in December indicates that budget uncertainty is already fading quickly.\u201d<\/p>\n Share<\/a>Introduction: UK GDP report coming up<\/p>\n Good morning. We\u2019re about to get a report card on the Labour government\u2019s first calendar year in power.<\/p>\n Growth data for the British economy in December, and for the fourth quarter of 2025, will be released at 7am UK time<\/p>\n They\u2019re expected to show modest growth in the October-December period \u2013 with economists forecasting an expansion of around 0.2% in a quarter dominated by Rachel Reeves\u2019s November budget.<\/p>\n That would be a pick-up on the 0.1% growth reported in July-September.<\/p>\n