Early official figures are doing nothing to dispel concerns the economy remains stuck in the doldrums.
The Office for National Statistics (ONS) has reported growth of 0.1% for the final quarter of 2025 – mirroring the 0.1% figure covering July to September – worse than the 0.2% expected by many economists.
Growth of 0.1% was measured for December, with activity easing following the pre-November slowdown partly blamed on nerves among consumers and the private sector ahead of the budget.
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The data was worse when growth was measured by head of population – a more accurate measure of the country’s living standards – with output down across the second half of 2025.
ONS director of economic statistics, Liz McKeown, said of its findings: “The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter.
“The often-dominant services sector showed no growth, with the main driver instead coming from manufacturing.
“Construction, meanwhile, registered its worst performance in more than four years.
“The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.
“Initial estimates show GDP per head was up on the previous year despite it contracting slightly in each of the last two quarters.”
The data was released as the government remains under pressure to incentivise investment against a backdrop of complaints over Treasury-imposed business costs that have hit employment.
Growth for the economy has been front and centre of Labour’s priorities for power from the off but its stewardship has been criticised by business groups, especially in the retail and hospitality sectors.
It also emerged this week that a senior member of the cabinet agreed.
The Health Secretary Wes Streeting told Lord Mandelson via a message in March last year, shared with Sky News this week,…
