UK GDP Grows 0.1% in Q4 2025, Matches Q3 Pace

The UK economy expanded by a modest 0.1 percent in the final quarter of 2025, matching the growth rate of the previous three months and falling short of economists' expectations for a slightly stronger performance, according to official data released by the Office for National Statistics.

The figures, covering October to December, showed the economy growing at the same pace as in the third quarter, despite earlier indications of potential acceleration from November's activity and post-budget clarity. Monthly breakdowns revealed a 0.1 percent contraction in October, a revised 0.2 percent expansion in November, down from an initial estimate of 0.3 percent, and a 0.1 percent rise in December. For the full year, gross domestic product increased by 1.3 percent, an improvement over the 1.1 percent growth recorded in 2024 and outpacing several European peers, including France at 0.9 percent, Italy at 0.7 percent, and Germany at 0.4 percent.

Growth in the quarter was driven primarily by the production sector, which rose 1.2 percent, particularly in manufacturing as output recovered from disruptions earlier in the year. The services sector, which accounts for about 80 percent of the...