UK Economy Grows 0.1% in Q4

The UK economy grew by 0.1% in the fourth quarter of 2025, matching the pace recorded in the previous three-month period and coming in slightly below market expectations of 0.2%, according to preliminary estimates. Production output rose 1.2%, reversing a 0.7% decline in Q3. Manufacturing increased by 0.9%, largely supported by gains in other manufacturing and machinery and equipment, as car production normalized following August’s cyber incident. In contrast, the dominant services sector showed no growth, after expanding by 0.2% in the third quarter. Business-facing services stagnated, while consumer-facing services posted modest growth of 0.2%. Construction weighed on overall performance, with output contracting 2.1% after a 0.4% rise in Q3. On an annual basis, GDP increased by 1.0% in Q4, falling short of expectations for 1.2% growth. For 2025 as a whole, the UK economy expanded by 1.3%, slightly above the 1.1% growth recorded in 2024.

The UK economy expanded by just 0.1% in Q3 2025, confirming preliminary estimates and slowing from 0.3% growth in the previous quarter. The production sector fell 0.3%, led by manufacturing (-0.8%) and mining and quarrying (-0.4%). Within manufacturing, transport equipment declined 4.7%, with motor vehicles, trailers, and semi-trailers tumbling 10.3% after a cyberattack severely disrupted operations at Jaguar Land Rover in September. Meanwhile, services rose 0.2%, supported by financial, insurance, and real estate activities, while professional and technical services declined. Construction output grew 0.2%, driven by repair and maintenance, though new work fell. On the expenditure side, household consumption increased 0.3%, government spending rose 0.4%, and business investment rebounded 1.5%. On an annual basis, GDP expanded 1.3%, slightly down from 1.4% in Q2, in line with initial estimates.

The UK economy expanded by just 0.1% in Q3 2025, easing from 0.3% growth in Q2 and falling short of market expectations of 0.2%, according to preliminary estimates. The production sector contracted 0.5%, following a 0.8% decline in the previous period, led by manufacturing (-0.8%) and mining and quarrying (-1.5%). Within manufacturing, motor vehicles, trailers, and semi-trailers tumbled 10.3% after a cyberattack severely disrupted operations at Jaguar Land Rover in September. Services output rose 0.2% (vs. 0.4% in Q2), supported by arts, entertainment, recreation, and real estate, while professional, scientific, and technical activities declined. Construction output increased 0.1% (vs. 1.0%), driven by repair and maintenance, though new work fell. In expenditure terms, gains in investment, spending, and net trade were partly offset by falling valuables and inventories. On an annual basis, GDP increased 1.3% in Q3, slightly below forecasts of 1.4%.