UK economy grows 0.1% in 4th quarter, missing forecasts

By Mucahithan Avcioglu

ISTANBUL (AA) - The British economy expanded 0.1% in the fourth quarter of last year, falling short of market expectations, according to official data released Thursday.

Markets had forecast 0.2% growth for the October-December period. The modest expansion followed a 0.1% decline in the previous quarter.

On an annual basis, gross domestic product (GDP) grew 1% in the fourth quarter, also below estimates, the Office for National Statistics (ONS) reported.

The ONS said growth was supported by a 1.2% increase in production output.

In contrast, services output showed no growth in the fourth quarter, construction output fell 2.1%.

In December alone, GDP also expanded 0.1% month-on-month.

“The largest contribution to the three-month on three-month growth came from a growth of 1.2% in production output. Services output showed no growth in the three months to December 2025, and construction output fell by 2.1%,” the ONS said.

- Industrial production continues to grow

British industrial production maintained its upward trend in the October-December period, rising 1.2% on compared to the previous quarter.

"Production output increased in all four main sectors; the largest positive contributor came from “manufacturing” (up 0.9%), supported by “electricity and gas” (up 3.1%), “mining and quarrying” (up 1.4%), and “water supply and sewerage” (up 0.7%)," it said.

In contrast to the quarterly rise, monthly production output decreased by 0.9% in December 2025, following a rise in November 2025 (up 1.3%).