In the fourth quarter gross domestic product (GDP) rose by 0.1% following growth of just 0.1% in the three months prior, according to the Office for National Statistics (ONS).
The ONS estimated that in December the economy rose by 0.1% lower than 0.2% growth in November.
Quarter four figures shows the economy grew by only 1.3% throughout all of 2025, up by 1.1% the year before.
Liz McKeown, ONS director of economic statistics, 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.
“The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.”
Lord Frost, Director General of the Institute of Economic Affairs, said, “Whatever the government’s growth strategy may be, it isn’t working.
“The economy has virtually stalled since the spring. And GDP per head is falling again: if you feel poorer, it’s because you are.
“This is an utter failure for a government that is so vocal about prioritising growth. They need to act quickly to turn this around.
“That means at the very least to stop sliding in the wrong direction with growth-damaging measures like business tax rises and the Employment Rights Act. The tax and spending burden needs to fall, and massive deregulation and supply-side reform is required to unlock our economy and get Britain growing again.
Fergus Jimenez-England, Associate Economist said, “Today’s GDP figures show that growth in 2025 was 1.3 per cent, coming in slightly below expectations. The fourth quarter only just scraped together a positive growth figure, with services disappointingly showing no growth.
That said, surveys point toward a recovery in business sentiment in the New Year after months of damaging speculation in the run up to the Autumn Budget.
With the Spring statement upcoming in March, the Chancellor should look to support this change in sentiment by avoiding a repeat of last year and refrain from further policy changes.”
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