The UK economy expanded 0.1% in Q4 2025 according to Office for National Statistics data released February 12, 2026, missing the 0.2% consensus forecast. This matched the 0.1% growth from Q3. December saw 0.1% monthly growth, down from November's revised 0.2%. Full-year 2025 growth reached 1.3%, exceeding 2024's 1.1% but falling short of the 1.4-1.5% projected by the Bank of England and Office for Budget Responsibility.
The services sector, which dominates the UK economy, recorded zero growth in Q4 — its first quarterly stagnation in over two years. Production grew 1.2% while construction contracted 2.1%, its worst performance in four years. Business investment dropped 2.7% in Q4, the largest decline since 2021. GDP per capita fell 0.1% in Q4 but rose 1.0% for the full year after no growth in 2024.
Economists attributed the weakness partly to uncertainty ahead of Chancellor Rachel Reeves's November 26 budget, with businesses and consumers delaying decisions amid speculation about tax increases. The budget included employee national insurance hikes and above-inflation minimum wage increases. Earlier in the year, a cyber attack on Jaguar Land Rover had also depressed manufacturing output.