UK GDP Growth: Q4 2025 Analysis - Production Up, Construction Down, Services Stagnant (2026)

The UK's GDP for the fourth quarter of 2025 saw a modest 0.1% growth, following a 0.1% increase in the previous quarter. This growth is estimated to be 1.0% higher compared to the same quarter last year. The output growth was primarily driven by a 1.2% increase in production, while the construction sector saw a 2.1% decline and the services sector showed no growth. GDP is projected to grow by 1.3% annually in 2025, following a 1.1% growth in 2024. Real GDP per head, however, decreased for the second consecutive quarter by 0.1%, but is still 0.6% higher than the same quarter in the previous year. In 2025, real GDP per head is expected to grow by 1.0% annually, following no growth in 2024. The bulletin includes revisions to data from the first quarter of 2025 to the third quarter of 2025, aligning with the National Accounts Revisions Policy. The mean absolute revision between the first quarterly GDP estimate and the same quarterly estimate three years later is, on average, plus or minus 0.28 percentage points. The GDP growth vintages from 2024 onwards are detailed in Table 4, with more information on uncertainty provided in Section 11. The implied GDP deflator, a broad measure of inflation, grew by 3.2% in the fourth quarter of 2025, primarily driven by household expenditure, gross capital formation, general government, and exports. The nominal GDP increased by 0.6% in the fourth quarter of 2025, making it 4.2% higher compared to the same quarter last year. The services sector saw revisions due to late responses from businesses, updated Monthly Business Survey returns, and a review of seasonal adjustment models, particularly in non-market education and retail trade.

UK GDP Growth: Q4 2025 Analysis - Production Up, Construction Down, Services Stagnant (2026)
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