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Katie WilliamsLive reporter<\/p>\n
UK economy ends 2025 with ‘subdued growth’ as Starmer says ‘more to do’published at 09:47 GMT<\/p>\n
09:47 GMT<\/p>\n
Katie Williams
Live reporter<\/p>\n
The UK economy grew by 0.1% in the final quarter of 2025, and the year ended with “subdued growth”, according to the Office of National Statistics. Here’s a recap of this morning’s news:<\/p>\n
What the stats say: We’ve had a few data points this morning. The economy grew by 0.1% in the final quarter of last year, 0.1% in the month of December, and 1.3% in 2025. The annual figure of 1.3% growth overall in 2025 is higher than the 1.1% recorded in 2024.<\/p>\n
Liz McKeown, the ONS director of economic statistics, says strong performance from the manufacturing sector was a major driver of growth in the final quarter, while the construction industry showed \u201ccontinued weakness\u201d and services flatlined<\/a> for the first time in two years.<\/p>\n How it’s been received: Prime Minister Keir Starmer says “our economy is growing” but acknowledges “there’s more to do” to ease the cost of living pressure. But Tory leader Kemi Badenoch says today’s figures show “our country is stuck in the slow lane.”<\/p>\n Business groups have called for more government action to help ease costs, with British Chambers of Commerce head of research David Bharier saying the UK faces a \u201cpersistent low growth trap\u201d.<\/p>\n However, economist and cross-bench peer Jim O’Neill tells the BBC the annual figure is “quite a bit higher”<\/a> than people expected at the start of the year.<\/p>\n What to expect: Some challenges lie ahead, as businesses contend with “nervy customers”, says our deputy economics editor Dharshini David<\/a>. Convincing consumers and businesses that they should shake off the winter blues will be critical to the government’s growth mission, she says.<\/p>\n