UK GDP Sees Slow Growth Ahead of January 2026

Source: Dukascopy Bank SA
According to the UK's official economic estimates, the United Kingdom's real gross domestic product grew by 0.2% in the three months leading up to January 2026, although there was no growth during January itself. Over a longer period, the economy is estimated to have expanded by 0.9% compared with the same three-month period ending in January 2025.

Growth during this period was driven mainly by the production sector. Production output increased by 1.3%, making it the strongest contributor to overall GDP growth. Manufacturing played a key role in this improvement, rising by 1.5%. A particularly notable factor was a 17.5% surge in the manufacture of motor vehicles, trailers, and semi-trailers, reflecting a recovery after a recent major cyber incident that had previously disrupted activity in this industry.

The services sector, which is the largest part of the UK economy, recorded modest growth of 0.2%. This ended a three-month period during which the sector had shown no growth. The largest positive contribution within services came from wholesale and retail trade, which increased by 1.0%.



Construction output fell by 2.0%, mainly due to a 3.2% decline in new work. The biggest negative influence within this category came from private housing new work, which dropped significantly during the period.
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