Weak end to 2025 on growth as cost pressures persist – Chamber

Weaker-than-expected economic growth in the final three months of last year reflect the continue struggles firms have been facing, business leaders said today.

The UK economy grew by 0.1 per cent in the final three months of last year, official figures show, slightly slower than expected.

According to the Office for National Statistics (ONS), the services sector showed no growth over the quarter, with the main boost coming from manufacturing.

The construction sector registered its worst performance in four years, the ONS said.

The economy is estimated to have grown by 1.3 per cent for the whole of 2025.

While this represents a slight uptick from 1.1 per cent growth a year earlier, it is lower than the 1.4 per cent expected by the Bank of England.

There was a strong performance from travel agencies, tour operators and administrative support services – but professional, scientific and technical activities declined by 1.1 per cent.

Ruth Fleet (pictured), senior policy advisor at Greater Birmingham Chambers of Commerce, said: “December’s GDP data reflects trends across 2025, driven by geopolitical uncertainty and continuing pressures on business.

“The Q4 results from our Quarterly Business Survey confirm these difficulties, with firms reporting that they continue to struggle with rising labour costs, corporate taxation, inflation and energy costs.

“While the Autumn Budget did assuage some of this uncertainty, businesses are still holding back from recruiting and investing, with weakening domestic demand in Q4.

“With the inflation rate held at 3.75 per cent recently, businesses need confidence and certainty from government to help drive meaningful growth in 2026.”