UK economy grew 0.1% in Q4 2025, below forecast, with weak investment and revised 2026 growth down to 0.9%.

The UK economy grew 0.1% in the fourth quarter of 2025, matching the previous quarter’s pace and falling short of the 0.2% forecast, according to the Office for National Statistics. Annual growth reached 1.3%, up from 1.1% in 2024, driven by a 1.2% rise in manufacturing, while services showed no growth and construction declined 2.1%. Budget uncertainty ahead of Chancellor Rachel Reeves’ November statement weighed on business investment, which dropped 2.7%, the largest decline in four years. The economy ended 2025 with weak momentum, and the Bank of England revised its 2026 forecast down to 0.9%, signaling a potential rate cut in March.