The UK economy expanded by 0.1% month-on-month in December 2025, matching market expectations and following a revised 0.2% increase in November. Growth was driven by the services sector, which rose 0.3%. Within services, transportation and storage (+2.0%), administrative and support services (+1.4%), and food and beverage service activities (+1.6%) posted gains that more than offset declines in sports activities and amusement and recreation (-5.9%) and human health and social work (-0.4%).
By contrast, production output fell 0.9%, with all four main production sectors contracting: electricity, gas, steam and air conditioning (-1.7%), manufacturing (-0.5%), water supply, sewerage and waste management (-2.4%), and mining and quarrying (-0.7%). Construction activity also weakened, declining 0.5%, as a 2.5% drop in repair and maintenance outweighed a 1.0% monthly increase in new work.
On an annual basis, GDP grew 0.7%, the slowest pace since the second quarter of 2024. This was below the consensus forecast of 1.1% and marked a deceleration from the 1.2% year-on-year increase recorded in November.
