The UK economy grew by 0.1% in the fourth quarter of 2025, matching the pace recorded in the previous three-month period but coming in just below market expectations of 0.2%, according to preliminary estimates. Production output rose by 1.2%, rebounding from a 0.7% decline in Q3. Within this sector, manufacturing expanded by 0.9%, driven largely by gains in other manufacturing categories and in machinery and equipment, as car production returned to more normal levels following the cyber incident in August.
By contrast, the dominant services sector registered no growth, after a 0.2% expansion in the third quarter. Business-facing services were flat, while consumer-facing services recorded modest growth of 0.2%. Construction activity dragged on overall performance, with output contracting by 2.1% after a 0.4% increase in Q3.
On an annual basis, GDP rose by 1.0% in Q4, undershooting expectations for 1.2% growth. For 2025 as a whole, the UK economy expanded by 1.3%, slightly above the 1.1% increase recorded in 2024.
