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The UK economy grew by only 0.1% in the final quarter of 2025, as business investment fell over the period and production rises failed to offset a lack of growth in the services sector.
According to the Office for National Statistics (ONS), this was the same rate of growth that was recorded in the previous three months.
Growth in the latest quarter was largely driven by an increase of 1.2% in production. The construction sector fell by 2.1%, its “worst performance in four years”, while the services sector showed no growth over the final quarter.
In terms of annual growth, the ONS said GDP grew by 1.3% in 2025, up from a 1.1% rise in 2024, as growth was seen across all main sectors over the year.
The ONS said the latest figures come as business investment is estimated to have fallen by 2.7% in the fourth quarter, following growth of 1.6% in the previous quarter. It increased by 3.5% across 2025, compared with 2024, however.
ONS director of Economic Statistics Liz McKeown said: “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.”
She added: “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.”
