ONS data shows marginal growth led by production gains even as services stagnate and construction weakens, signalling fragile recovery momentum.
The UK economy recorded modest growth at the end of 2025, with official data showing output edged higher in December and over the latest three-month period, reflecting resilience in production but continued weakness in construction.
According to the government’s Office for National Statistics (ONS), real GDP rose 0.1 per cent in the three months to December 2025, following contractions of 0.1 per cent in the prior two rolling periods.
The ONS said the main driver of the quarterly improvement was the industrial sector. Production output increased 1.2 per cent over the period, while services showed no growth and construction output fell 2.1 per cent, highlighting uneven momentum across sectors.
On a monthly basis, the economy also expanded slightly. GDP is estimated to have grown 0.1 per cent in December, after a revised 0.2 per cent rise in November and a 0.1 per cent decline in October.
The ONS noted that December’s growth was supported by services activity, which rose 0.3 per cent during the month, though this was partly offset by declines in production and construction.
Annual growth picture
Looking at the broader trend, the data show the economy has grown modestly but steadily. GDP increased 1.0 per cent in the three months to December 2025 compared with the same period a year earlier, with services, production, and construction each contributing roughly 1.0 per cent, 1.0 per cent and 0.2 per cent respectively.
For the full calendar year, UK output rose 1.3 per cent in 2025, an improvement from 1.0 per cent growth in 2024. The ONS said services were the main engine of expansion, rising 1.4 per cent over the year, while production grew 0.2 per cent and construction 1.8 per cent.
Sectoral signals
The data underline a mixed economic backdrop. The ONS highlighted that services output showed no growth for the third consecutive three-month period, despite gains in several subsectors such as administrative services, public administration, and information and communication.
Meanwhile, manufacturing helped lift industrial output, with gains in machinery, electronics, and pharmaceuticals, though some subsectors—including food products and transport equipment—declined.
Construction remained the weakest component of the economy. Output in the sector fell 2.1 per cent in the three months to December, marking its lowest three-month growth reading since September 2021.
Outlook and revisions
The statistics agency cautioned that early GDP estimates are subject to revisions as more data become available, noting that figures from January to November 2025 remain open to change.
Overall, the latest release suggests the UK economy ended 2025 with limited but positive momentum, supported by industrial recovery and steady services activity, even as construction weakness and patchy sectoral performance continue to weigh on growth.
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