Westminster, Southbank, London, England.
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The UK economy grew by just 0.1% in the fourth quarter, preliminary figures released by the Office for National Statistics on Thursday showed.
Economists polled by Reuters had expected the economy to grow 0.2% in the October-December period, following 0.1% growth in the third quarter.
The economic growth rate in December was 0.1% compared to the previous month, slowing down from 0.2% and revised downward from the previous month’s 0.3% increase. GBP Based on this statistics, the exchange rate against the dollar was unchanged at $1.3624.
Liz McCune, director of economic statistics at the ONS, said the latest data showed a mixed picture of the economy.
“The often dominant services sector did not show growth and the main driver was manufacturing instead, while the construction sector posted its worst performance in more than four years,” he said on Thursday.
The ONS noted that the UK economy is estimated to grow by 1.3% in 2025, following growth of 1.1% in 2024.
The growth figures were released after the Bank of England narrowly voted to keep interest rates on hold at 3.75% at a meeting in early February in light of persistent inflationary pressures.
But those pressures are expected to ease in the coming months, with economists predicting the central bank could cut interest rates next time to stimulate Britain’s struggling economy.
Samuel Edwards, head of client portfolio management at financial services firm Ebury, said the UK ended 2025 on a “very subdued but positive note”.
“After a very turbulent week in UK politics and a wave of market volatility, businesses will be pleased to see a flurry of positive economic news,” he said.
“However, while the UK economy remains above water, concerns remain about the slowing job market and the persistence of inflation,” he said in emailed comments.
Scott Gardner, investment strategist at JPMorgan Personal Investing, commented on Thursday that despite a mixed final quarter, recent data suggests the UK economy will recover in 2026.
“While manufacturing activity recovered in the first months of the year, there has been a significant influx of new business activity into the services industry. It is hoped that this progress will oil the wheels of the economy and lead to improved prospects and performance in 2026.”
