UK GDP Falls 0.1% in September

The GDP in the UK stalled mom in January 2026, following a 0.1% rise in December, and compared to forecasts of a 0.2% gain. Services showed no growth (vs +0.2% in the previous month), with the largest negative contribution coming from administrative and support service activities that fell 2.3%, driven by a 5.7% slump in employment activities, and a 3.9% drop in rental and leasing. In contrast, the largest positive contribution came from wholesale and retail trade; repair of motor vehicles (up 1%). Meanwhile, production dropped 0.1%, extending a 0.9% drop in December, led by falls in mining and quarrying (-3.2%) and electricity, gas, steam and air conditioning supply (-0.3%). This decline was partially offset by growths of 1.9% in water supply; sewerage, waste management and remediation activities, and of 0.1% in manufacturing. The construction sector grew 0.2%. Year-on-year, the economy expanded 0.8%. Considering the three months to January, the GDP grew 0.2%.

The UK economy grew 0.1% month-on-month in December 2025, in line with market expectations and following a revised 0.2% increase in November. Services led the growth, rising 0.3% as gains in transportation and storage (+2.0%), administrative and support services (+1.4%), and food and beverage service activities (+1.6%) offset declines in sports activities and amusement and recreation (-5.9%) and human health and social work (-0.4%). Meanwhile, production output fell 0.9%, with all four production sectors declining: electricity, gas, steam and air conditioning (-1.7%), manufacturing (-0.5%), water supply, sewerage and waste management (-2.4%), and mining and quarrying (-0.7%). Construction dropped 0.5%, driven by a 2.5% fall in repair and maintenance, while new work rose 1.0% on the month. On a yearly basis, GDP grew 0.7%, the softest since Q2 2024, below the expected 1.1% and slowing from the 1.2% rise recorded in November.

The UK economy expanded by 0.3% month-on-month in November 2025, rebounding from a 0.1% contraction in October and outperforming market expectations of 0.1% growth. The services sector led the recovery, growing by 0.3% and reversing a 0.3% decline in the previous month. Professional, scientific and technical activities made a strong contribution, rising by 1.7%, followed by information and communication (+1.5%) due to gains in computer programming, consultancy and related activities, and wholesale and retail trade (+0.6%). Production output increased by 1.1%, following a 1.3% rise in October, reflecting a 2.1% expansion in manufacturing. This was largely driven by a 10.7% surge in transport equipment manufacturing, with output of motor vehicles, trailers and semi-trailers jumping 25.5%, as car production continued to normalize after August’s cyber incident. In contrast, construction activity declined by 1.3%, slightly deeper than the 1.2% fall recorded in October.