Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Reeves says ‘more to do’ after sluggish GDP growth – Full Analysis.
In the services sector, which accounts for around 80% of the UK’s economic output, the largest drag on growth at the end of the year was professional, scientific and technical activities.
That was following by education, arts, entertainment and recreation, and financial services.
But growth in areas such as administrative services, including travel agencies and tour operators, and IT meant the sector flatlined overall.
The economy was helped in the quarter by Jaguar Land Rover, with the carmaker bringing production back online after a major cyber-attack. But a period of uncertainty in the run-up to November’s Budget, with speculation about tax changes, caused companies to withhold investment.
Liz McKeown, ONS director of economic statistics, told the BBC’s Today programme: “The overall picture as 2025 drew to a close continued to be one of subdued growth.”
Ruth Gregory, chief UK economist at Capital Economics, said the “disappointing” growth figures suggested Britain’s economy “still has very little momentum”.