The UK economy grew by 0.1% in the final quarter of the year, according to The Office for National Statistics (ONS).
There was no growth in the services sector for the first time in over two years, with the slight boost driven by an increase in manufacturing. The construction sector, meanwhile, suffered its worst quarterly performance in four years.
David Bharier, Head of Research at the British Chambers of Commerce, said: “The data shows the first annual estimate of GDP came in at 1.3% in 2025, just below our own forecast of 1.4%. But quarterly growth was weaker than expected, at just 0.1% in Q4. 
“Beneath the headline, the quarterly data paints a subdued picture. Services were flat, construction fell sharply, and business investment dropped in the quarter. That combination points to weak momentum going into 2026 and underlines the persistent low growth trap the UK faces.
“The past 12 months have been marked by uncertainty and rising costs for firms across the UK. Our latest survey of UK firms in Q4 shows that most SMEs are holding back on investment, with rising taxation and cost pressures are cited as the top two concerns.
“Improving the outlook now depends on restoring business dynamism. Government must move from strategy to delivery – backing infrastructure projects, speeding up planning decisions, addressing skills gaps, and strengthening export support – so firms can invest, export and grow.”
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