Displaying items by tag: investment
Economy grows by worse-than-expected 0.1%
The UK economy grew by just 0.1% in the final quarter of 2025, below the 0.2% forecast by many economists, according to the Office for National Statistics. The figure mirrors growth in the previous quarter, reinforcing concerns that the economy remains sluggish. The services sector showed no growth, manufacturing provided the main boost, and construction recorded its weakest performance in over four years. If measured per head of population – a clearer indicator of living standards – output declined across the second half of the year. Although overall growth for 2025 slightly exceeded that of 2024, unemployment has risen to 5.1%, and small businesses report pressures comparable to the Covid period. Investment is reportedly restrained by higher employment costs and global uncertainties, including international trade tensions. Rachel Reeves defended the Government’s economic plan, highlighting falling inflation and interest rate cuts. However, economists warn that policy clarity and stable foundations are essential if growth is to strengthen meaningfully in 2026.