Gross domestic product (GDP) expanded 0.1% in the October-December period after zero growth in the third quarter (Q3) of 2024, the Office for National Statistics (ONS) said in a statement.
Analysts’ consensus forecast was for the UK economy to have contracted slightly in the fourth quarter (Q4).
The data hands a reprieve to the government of Prime Minister Keir Starmer which has put growing the UK economy at the top of its mission since Labour won a general election in July after 14 years in opposition to the Conservatives.
The economy had struggled to grow during its first few months in office as inflation remained elevated.
The Bank of England last week halved its forecast for British growth this year, saying GDP would now grow by only 0.75% in 2025, blaming global risks amid tariffs on imports into the US unleashed by President Donald Trump.
That would mark a slowdown on growth of 0.9% last year, according to ONS data today, which added that the economy expanded 0.4% in December.
“The economy picked up in December after several weak months, meaning overall the economy grew a little in Q4,” noted Liz McKeown, director of economics at the ONS.
“Across the quarter, growth in services and construction were partially offset by a fall in production,” she added.
Tariffs threat
Reacting to the latest figures, finance minister Rachel Reeves said she was determined to help grow the UK economy, in large part by easing regulation on building new infrastructure.
“For too long, politicians have accepted an economy that has failed working people,” she said in a statement.
“After 14 years of flatlining living standards, we are going further and faster through our plan for change to put more money in people’s pockets,” Reeves added.
Her plans could be scuppered, however, by Trump’s tariffs.
Britain on Tuesday said it was “engaging” with the US on the detail of the president’s steel tariffs, in contrast to firm responses by Canada and the EU.
“The US and the UK share a strong and balanced trading relationship, we invest hugely in each other’s economies and we will continue to work closely with President Trump to boost growth and to create jobs,” Starmer told parliament Wednesday, seeking to keep Britain’s closest ally onside.