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UK economy ekes out 0.1% growth in the fourth quarter
Modest 0.1% UK GDP growth in Q4 2025 reflects budget uncertainty, weak construction, and manufacturing recovery after a major cyberattack, ONS reported.
- On Feb 12, the Office for National Statistics said the GDP grew by 0.1% in the fourth quarter, with activity faring worse than initially estimated during Rachel Reeves' budget run-up.
- Ahead of the autumn budget, uncertainty prompted businesses and consumers to delay decisions, while tax rises from the November budget were more modest than feared.
- Manufacturing led output gains while services were flat, construction output contracted by 2.1%, and business investment fell almost three percent.
- Policy implications include a trimmed Bank of England growth forecast for 2026 to 0.9%, with expectations of a March rate cut to 3.50%, as last week the bank kept its benchmark rate at 3.75%.
- Looking at the year as a whole, GDP rose 1.3% in 2025, while forecasters diverge: Investec projects 0.2% December growth and 1.4% annual gain, Pantheon expects no December growth, and Robert Wood holds a 0.1% call.
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53 Articles
53 Articles
In the 2025 accumulation, the economy grew by 1.3%, exceeding 1.1% of the previous year and reaching the highest level since 2022.
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Coverage Details
Total News Sources53
Leaning Left7Leaning Right5Center14Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 27%
C 54%
R 19%
Factuality
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