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UK Economy Grows 0.1% Amid Mixed Sector Performance

2/12/2026

34 3 Full Breakdown

Summary

Story summary

In the fourth quarter of 2025, the United Kingdom economy grew by 0.1%, below the 0.2% forecast.
Manufacturing rose by 1.2%, while the services sector stagnated.
Construction declined by 2.1%, its worst performance in more than four years.
Chancellor Rachel Reeves cited a positive outlook, noting six interest rate cuts and a focus on economic stability, as business investment fell by 2.7%.

History

Historical Context

The UK's economic struggles in 2012, marked by a 0.2% GDP contraction, echoed the aftermath of the Great Recession, which began in 2008. The Bank of England's £375 billion quantitative easing aimed to stimulate growth during this period of stagnation. Today, similar challenges persist, with the services sector stagnating and construction declining, underscoring the need for effective fiscal policies to foster economic stability.

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Story summary

In the fourth quarter of 2025, the United Kingdom economy grew by 0.1%, below the 0.2% forecast.
Manufacturing rose by 1.2%, while the services sector stagnated.
Construction declined by 2.1%, its worst performance in more than four years.
Chancellor Rachel Reeves cited a positive outlook, noting six interest rate cuts and a focus on economic stability, as business investment fell by 2.7%.

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