Westminster, South Financial institution, London, England.
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The U.Ok. economic system grew a meager 0.1% within the fourth quarter, in keeping with preliminary figures from the Workplace for Nationwide Statistics on Thursday.
Economists polled by Reuters anticipated the economic system to have grown 0.2% over the October-December interval, following 0.1% progress within the third quarter.
Month-on-month, the economic system expanded 0.1% in December, down from a 0.2% growth, revised down from 0.3%, the earlier month. Pound sterling was flat in opposition to the greenback following the information, at $1.3624.
The ONS’ Director of Financial Statistics Liz McKeown mentioned the newest information confirmed a blended financial image.
“The usually-dominant providers sector confirmed no progress, with the principle driver as an alternative coming from manufacturing. Building, in the meantime, registered its worst efficiency in additional than 4 years,” she mentioned on X Thursday.
The U.Ok. economic system is estimated to have grown 1.3% in 2025, the ONS famous, following progress of 1.1% in 2024.
The expansion figures come after the Financial institution of England voted narrowly at its early February assembly to maintain rates of interest on maintain, at 3.75%, given persistent inflationary pressures.
These pressures are anticipated to ease within the coming months, nonetheless, and economists predict that the central financial institution may subsequent lower charges in April to stimulate the lackluster British economic system.
Samuel Edwards, head of Shopper Portfolio Administration at monetary providers agency Ebury, famous that the U.Ok. had ended 2025 on a optimistic observe, “albeit a really modest one.”
“After a really turbulent week in UK politics and a wave of market jitters, companies will likely be happy to have a slither of optimistic financial information,” he mentioned.
“Nevertheless, while the U.Ok. economic system retains its head above water, issues stay across the slowing jobs market and sticky inflation,” he remarked in emailed feedback.
Scott Gardner, funding strategist at J.P. Morgan Private Investing, commented Thursday that after a blended bag within the ultimate quarter, latest information hints that the U.Ok. economic system is due a restoration in 2026.
“Manufacturing exercise picked up within the first month of the yr whereas the providers business has seen an honest inflow of recent enterprise exercise. The hope is that this progress can grease the wheels of the economic system and result in an improved outlook and efficiency over 2026.”
