The UK economy grew by just 0.1% in the fourth quarter Preliminary figures Thursday from the Office for National Statistics.

Economists polled by Reuters expected the economy to grow 0.2% between October and December. Following third-quarter growth of 0.1%.

The economy expanded by 0.1% in December, down from 0.2% and revised from 0.3% in the previous month. GBP After the data was released, the exchange rate against the U.S. dollar was flat at $1.3624.

Liz McKeown, director of economic statistics at the ONS, said the latest figures showed a mixed picture for the economy.

“The services sector, which usually dominates, is not showing growth, with the main driver coming from manufacturing. Meanwhile, construction is performing its worst performance in more than four years,” she said on Thursday.

The Office for National Statistics noted that the UK economy is expected to grow by 1.3% in 2025, after growing by 1.1% in 2024.

The Bank of England releases growth figures after a narrow vote at its early February meeting Keep interest rates unchangedTaking into account ongoing inflationary pressures, the interest rate is 3.75%.

However, these pressures are expected to ease in the coming months, with economists predicting that the central bank may next cut interest rates in April to stimulate the sluggish British economy.

Samuel Edwards, head of client portfolio management at financial services firm Ebury, noted that the UK ended 2025 on a positive note “albeit very modestly”.

He said: “Businesses will be pleased to hear some positive economic news after a very tumultuous week for UK politics and a wave of market turmoil.”

“However, while the UK economy remains stable, concerns about a slowdown in the jobs market and inflation remain,” he said in emailed comments.

JP Morgan personal investment strategist Scott Gardner commented on Thursday that after a mixed final quarter, recent data suggests that the British economy will recover in 2026.

“Manufacturing activity picked up in the first month of the year, while the services sector saw an influx of new business activity. It is hoped that this development will boost the economy and improve prospects and performance in 2026.”