UK economy records 0.1% fourth-quarter growth and 1.3% in 2025

The UK economy eked out modest growth at the end of 2025, with gross domestic product rising slightly in December and the fourth quarter as a whole, broadly in line with expectations, official data showed on Thursday.

According to the Office for National Statistics, UK real GDP increased by 0.1% in the fourth quarter of 2025 from the third, matching the 0.1% expansion recorded in the third quarter from the second. On an annual basis, UK GDP was 1.0% larger than in the fourth quarter of 2024.

For 2025 as a whole, the UK economy grew 1.3%, accelerating a bit from 1.1% growth in 2024 and ahead of FXStreet-cited consensus expectations of 1.2%.

Monthly figures showed GDP rose 0.1% in December on month, following growth of 0.2% in November, revised down from 0.3%, and an unrevised fall of 0.1% in October. FXStreet-cited consensus had expected a 0.1% month-on-month rise in December.

In output terms, the modest quarterly growth was driven by a 1.2% increase in production output in the three months to December, following a 0.1% fall in the three months to November. By contrast, services output showed no growth over the quarter, while construction output fell 2.1%, marking its weakest three-month reading since September 2021.

In December alone, services output rose 0.3%, but production fell 0.9% and construction declined 0.5%.

Real GDP per head fell 0.1% in the fourth quarter, marking a second consecutive quarterly decline, though it was 0.6% higher than a year earlier. For 2025 as a whole, real GDP per head increased 1.0%, following no growth in 2024.

Separately, the ONS said industrial production declined 0.9% month-on-month in December, compared with expectations for flat output and after a 1.1% rise in November. On a yearly basis, industrial production was up 0.5%.

Manufacturing output fell 0.5% on the month in December and rose 0.5% on the year.

Separate trade data showed the UK’s goods trade deficit widened to £22.72 billion in December, broadly in line with consensus expectations of a £22.7 billion shortfall.

The overall trade balance stood at a deficit of £4.34 billion in December, while the non-EU trade deficit totalled £10.99 billion.

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