Gdp grows by worse-than-expected 0.1% in final quarter of 2025

The country's gdp expanded by 0. 1% in the final quarter of 2025, a weaker outcome than the 0. 2% many had expected and a reading that has done little to dispel concerns that growth remains stuck in the doldrums for the year.

Gdp edges up 0. 1%, mirroring the previous quarter

Early official figures from the Office for National Statistics show growth of 0. 1% for the final quarter of 2025, the same pace recorded for July to September, with 0. 1% growth measured for December specifically.

ONS director of economic statistics Liz McKeown said, "The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter. " The rate of growth across 2025 as a whole was up slightly on the previous year, the ONS added.

Services flat while manufacturing provides the main boost

The often-dominant services sector showed no growth in the final quarter of 2025, while manufacturing provided the biggest boost to gdp, the initial figures for the quarter.

Construction registered its worst performance in more than four years, and initial estimates show GDP per head was up on the previous year despite it contracting slightly in each of the last two quarters.

Government pressure and the outlook for policy

The data was released as the government remains under pressure to incentivise investment against a backdrop of complaints over Treasury-imposed business costs that have hit employment; growth for the economy has been front and centre of Labour's priorities for power.

One market reaction flagged in contemporaneous coverage is that an interest rate cut is seen as even more likely next month as inflation falls, a development policymakers and businesses will be watching closely in light of the 0. 1% quarterly growth figures.

Officials will continue to publish fuller estimates and sector breakdowns in coming releases; for now the final quarter of 2025 leaves policymakers facing weak headline growth, a flat services sector in December, a manufacturing-led uplift and construction at its weakest in more than four years.