UK gross domestic product (GDP) recorded no month-on-month growth in January, following increases of 0.1% and 0.2% in December and November 2025 respectively.

The latest data, published by the Office for National Statistics (ONS), showed that month-on-month, services output showed no growth, with production output falling by 0.1% and construction output increasing by 0.2%

In the three months to January, real GDP increased by 0.2% compared with the three months to October.

Across the sectors, services output grew by 0.2%, after showing no growth in the three months to December, while production output grew by 1.3% in this period, compared to a growth of 1.2% in the three months to December.

However, construction output continued to shrink by 2% in the three months to January, following falls of 2.1% and 0.9% in the three months to December and November respectively.

Investment strategist at Quilter, Lindsay James, described the UK economy as "sluggish and unexciting", with global risks threatening to "derail the Government in its quest to boost the rate of growth".

She concluded: "Consumers are reining in on the ‘fun’ spending – accommodation and recreation are firmly in the red. This suggests confidence remains low, amid rising unemployment, and before events in the Gulf are even taken into account.

"The problem facing the UK is that despite the Government saying they need to stick to the plan to produce economic growth, forecasts point to very little improvement, with even 2% growth a year becoming a pipe dream. Now, the economy did manage to confound the expectations that it would slip into recession at the end of 2025, and last year saw it have a good first half of the year so some of that could be repeated in time. But, the OBR just 10 days ago downgraded 2026’s forecast for growth.

"And since the Spring Statement, the geopolitical situation has erupted into something that could further threaten the growth prospects of the UK."

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