UK Economy Records Minimal 0.1% Growth in Final Quarter of 2025
Official statistics released on February 12, 2026, have revealed that the United Kingdom's gross domestic product expanded by a mere 0.1% during the fourth quarter of last year. This figure falls short of the anticipated 0.2% growth, indicating a continued period of economic stagnation. The data, published by the Office for National Statistics, shows that this minimal growth rate mirrors the identical 0.1% increase recorded in the previous quarter, highlighting a persistent lack of momentum in the nation's economic performance.
Annual and Quarterly Economic Performance Analysis
When examining the broader annual picture, real GDP is estimated to have been 1% higher in Quarter 4 of 2025 compared to the same period a year earlier. For the entire year of 2025, GDP is calculated to have increased by 1.3%, which represents a slight improvement over the 1.1% growth observed in 2024. However, this modest annual gain is overshadowed by the concerning quarterly figures that suggest underlying weaknesses in key sectors of the economy.
Breaking down the output terms for the latest quarter reveals a mixed performance across different industries. The production sector demonstrated some resilience with a notable increase of 1.2%, providing the primary driver for the overall growth. In stark contrast, the construction sector experienced a significant decline of 2.1%, marking one of its poorest performances in recent years. Meanwhile, the services sector, which typically dominates the UK economy, showed absolutely no growth during this period, contributing to the overall economic sluggishness.
Monthly Figures and Sector-Specific Challenges
The monthly data for December 2025 presents an equally uninspiring economic landscape. Monthly GDP is estimated to have grown by just 0.1%, following a slightly better growth of 0.2% in November and an unrevised contraction of 0.1% in October. During December specifically, the services sector managed a modest 0.3% growth, but this positive movement was offset by substantial declines in other areas. Production fell by 0.9% while construction dropped by 0.5%, indicating ongoing challenges within these vital industries.
Liz McKeown, Director of Economic Statistics at the Office for National Statistics, commented on the findings, stating: "The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter. The often-dominant services sector showed no growth, with the main driver instead coming from manufacturing. Construction, meanwhile, registered its worst performance in more than four years."
McKeown further noted: "The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors. Initial estimates show GDP per head was up on the previous year despite it contracting slightly in each of the last two quarters."
Expert Warnings and Economic Implications
Economic experts have expressed serious concerns about the implications of these persistently low growth figures. Craig Fish, Director at London-based Lodestone Mortgages, provided a stark assessment when speaking to financial commentators: "The UK economy is stuck in a rut. Quarter after quarter, we're limping along at 0.1% growth and that's barely a pulse. Construction down 2.1% in Q4, production falling 0.9% in December alone, these aren't just statistics, they're warning signs that current policy isn't delivering."
Fish elaborated on the practical consequences for households and businesses: "Annual growth of 1.3% sounds respectable until you remember the pressures still squeezing household budgets. For mortgage holders and first-time buyers, a sluggish economy means prolonged uncertainty around rates, lending appetite, and housing market confidence. The government needs to stop reciting the same script and start showing real results. Businesses and homeowners aren't looking for soundbites, they're looking for stability and a credible path to growth. Right now, neither is in sight."
The combination of stagnant growth in the services sector, significant declines in construction, and only marginal improvements in production output paints a concerning picture for the UK's economic trajectory. These figures come at a time when many households continue to face financial pressures from various directions, including the ongoing cost of living challenges that have persisted in recent years.
