The U.K. economy expanded just 0.1% in the fourth quarter, undershooting expectations for a 0.2% rise, official data showed Thursday.
The marginal gain follows 0.1% growth in the third quarter, highlighting a period of sluggish economic momentum.
December output rose 0.1% month-on-month, easing from November’s revised 0.2% increase. Sterling remained largely unchanged after the release.
Services showed no growth, while manufacturing drove the modest expansion. Construction posted its weakest performance in over four years.
For 2025, the economy is estimated to have grown 1.3%, up slightly from 1.1% in 2024.
The Bank of England recently held rates at 3.75%, citing persistent inflation, though markets expect a potential rate cut in April.
Analysts say the economy ended the year on a cautious note, with concerns over sticky inflation and softening employment still weighing.
Early 2026 data suggests manufacturing improvement and stronger services activity, raising hopes for a broader recovery ahead.
