UK Economy Posts Marginal Q3 Growth as Momentum Remains Fragile

Britain’s economy expanded by a modest 0.1% in the third quarter of 2025, official data showed on Monday, underscoring the persistent lack of momentum in the country’s economic recovery.

The Office for National Statistics (ONS) confirmed that gross domestic product growth in the July-to-September period matched its preliminary estimate, coming in broadly in line with market expectations. The latest reading points to continued stagnation, as higher interest rates and weak domestic demand weigh on activity.

In a downward revision, the ONS also cut its estimate for second-quarter growth to 0.2%, from a previously reported 0.3%, suggesting the economy entered the second half of the year on a weaker footing than initially thought.

Looking ahead, the Bank of England has struck a cautious tone. The central bank last week forecast zero GDP growth for the fourth quarter of 2025, while noting that the underlying trend rate of expansion remains subdued at around 0.2% per quarter. Policymakers have warned that tight financial conditions and lingering inflation pressures are likely to continue constraining growth in the near term.

Together, the data reinforce expectations that the UK economy will struggle to generate meaningful acceleration without clearer improvements in household spending, business investment, and productivity.