UK Economy Stagnates with 0.1% Growth as Construction Sector Plunges
UK economy grows just 0.1% as construction falls sharply

The UK economy has barely expanded, according to the latest official figures, with growth described by analysts as the equivalent of treading water.

Data from the Office for National Statistics (ONS) reveals that Gross Domestic Product (GDP) increased by just 0.1% in the three months leading up to November 2025.

Sector Performance Reveals a Patchy Picture

This marginal growth follows a period of stagnation, with zero growth recorded in the three months to October and an identical 0.1% rise in the quarter to September.

Looking at November alone, monthly GDP did see a more robust increase of 0.3%, rebounding from a 0.1% fall in October. A closer examination of the sectors shows a deeply uneven performance.

Services, the largest part of the economy, grew by 0.3% in November. The production sector, which includes manufacturing, expanded by a strong 1.1% for the month.

However, this was overshadowed by a severe contraction in construction, which fell by 1.3% in November.

Construction Endures a Major Setback

The longer-term view for the building industry is even more concerning. In the three months to November, construction output fell by 1.1%, its largest three-monthly decline in nearly three years.

Liz McKeown, Director of Economic Statistics at the ONS, commented on the mixed data. "The economy grew slightly in the latest three months, led by growth in the services sector," she said.

"This was partially offset by a fall in manufacturing, where three-monthly growth was still affected by the cyber incident that impacted car production earlier in Autumn. Construction contracted again, registering its largest three-monthly fall in nearly three years."

Expert Reaction: 'Stuck in a Low Gear'

Financial experts have reacted with concern, noting that the technical expansion does not translate to a feeling of prosperity for households and businesses.

Craig Fish, Director at Lodestone Mortgages, told Newspage: "On paper, the UK economy has technically grown but for households and businesses, it doesn’t feel like it."

He described the 0.1% rise over three months as hardly a sign of strength, especially with construction falling sharply. "For many people, costs are still high, confidence is fragile and day-to-day finances remain stretched," he added.

From a monetary policy perspective, Fish suggested this weak growth supports the case for a gradual reduction in interest rates, but warned borrowers not to expect dramatic cuts overnight.

Philly Ponniah, a Chartered Wealth Manager at Philly Financial, echoed the sentiment, stating: "This is the economic version of treading water — not sinking but not moving forward either."

She pointed to the soft services growth and the decline in construction as signals of low confidence, concluding: "It feels like the UK economy is stuck in a low gear."

The data underscores the fragile state of the UK's economic recovery, with significant headwinds remaining in key sectors despite avoiding an outright contraction.