Gross Domestic Product in the UK 2025
In January 2025, the UK’s real Gross Domestic Product (GDP) monthly index was estimated at 101.5, slightly below the 101.6 recorded in December 2024. This monthly fall was primarily driven by a notable 0.9% drop in production output, with manufacturing being the main contributor to the downturn. Construction output also declined by 0.2%, extending a downward trend from the previous month. Despite these sectoral contractions, the services sector grew modestly by 0.1%, partially offsetting the decline.
Looking at the broader picture, GDP increased by 0.2% in the three months to January 2025 compared to the previous three months, mainly due to a 0.4% rise in services. Over the same period, production contracted by 0.9% and construction rose by 0.4%. When comparing year-on-year figures, the UK economy grew by 1.0% in January 2025 versus January 2024, with services expanding by 1.6%, construction by 0.9%, while production saw a 1.8% drop.
The services sector remains the backbone of the UK economy, with growth in administrative and support services (up 1.9%) and retail trade (up 1.7%) driving much of the monthly increase. However, declines in accommodation and food services (down 2.4%) and sectors like telecommunications and legal activities held back stronger gains. Consumer-facing services also showed slight improvement (up 0.1% for the month and 0.5% over three months), boosted by retail activity and personal services. Overall, while there are signs of resilience in key areas, the economy remains sensitive to fluctuations in the production and construction sectors.
United Kingdom GDP Index by Year
The UK’s monthly GDP index for January 2025 stands at 101.5, according to the Office for National Statistics (ONS), using a rebased scale where 2022 = 100. This marks a 0.1% decline from December 2024 (101.6), though the three-month-on-three-month growth to January remains positive at +0.2%.
| Year | Jan | Dec | Annual Trend |
|---|---|---|---|
| 2007 | 82.9 | 85.2 | Steady growth pre-crisis |
| 2008 | 85.2 | 81.3 | Start of financial crisis, declining GDP |
| 2009 | 80.5 | 80.5 | Recession impact, flat trend |
| 2010 | 80.0 | 82.0 | Gradual recovery |
| 2011 | 82.4 | 84.1 | Continued rebound |
| 2012 | 84.5 | 84.6 | Slow growth |
| 2013 | 84.4 | 86.5 | Recovery accelerates |
| 2014 | 87.0 | 89.7 | Strong, steady growth |
| 2015 | 89.6 | 91.1 | Moderate growth |
| 2016 | 91.2 | 93.7 | Slightly stronger performance post-Brexit vote |
| 2017 | 93.9 | 95.9 | Growth continues |
| 2018 | 95.7 | 96.2 | Stable expansion |
| 2019 | 96.7 | 98.5 | Pre-COVID stability |
| 2020 | 98.6 | 91.1 | Major dip due to COVID (April low: 73.2) |
| 2021 | 88.1 | 99.2 | Strong recovery |
| 2022 | 99.4 | 100.1 | Index rebased (2022 = 100) |
| 2023 | 100.3 | 100.1 | Flatline with slight fluctuations |
| 2024 | 100.5 | 101.6 | Mild growth throughout the year |
| 2025 | 101.5 | — | January shows -0.1% dip from Dec-24 |
This monthly contraction is largely attributed to a 0.9% drop in production output, particularly within manufacturing and energy sectors. Construction output also saw a slight decline of 0.2%, while services, the largest component of UK GDP, grew by 0.1%, helped by gains in consumer-facing services and public services like healthcare and education.
Over the longer term, the data shows the UK economy has made a strong recovery from the pandemic slump in 2020 (low point: 73.2 in April 2020). Since then, the index has climbed steadily, reaching above pre-COVID levels by late 2022. While the pace of growth in 2023 and 2024 has been modest, the current trajectory reflects economic resilience, with services driving momentum despite challenges in manufacturing and global uncertainties.
Monthly UK GDP Growth and Sector Contributions (Jan 2024 – Jan 2025)
| Month | GDP (%) | Services | Production | Construction |
|---|---|---|---|---|
| Jan-24 | 0.4 | 0.52 | -0.17 | 0.07 |
| Feb-24 | 0.2 | 0.15 | 0.12 | -0.08 |
| Mar-24 | 0.5 | 0.45 | 0.03 | 0.03 |
| Apr-24 | -0.1 | 0.06 | -0.11 | -0.06 |
| May-24 | 0.3 | 0.2 | -0.03 | 0.11 |
| Jun-24 | -0.2 | -0.2 | 0.01 | 0.01 |
| Jul-24 | -0.1 | 0.02 | -0.07 | -0.04 |
| Aug-24 | 0.2 | 0.05 | 0.08 | 0.04 |
| Sep-24 | -0.1 | -0.02 | -0.05 | -0.01 |
| Oct-24 | -0.1 | -0.07 | -0.07 | 0.00 |
| Nov-24 | 0.1 | 0.12 | -0.06 | 0.04 |
| Dec-24 | 0.4 | 0.32 | 0.07 | -0.01 |
| Jan-25 | -0.1 | 0.05 | -0.11 | -0.01 |
In January 2025, the UK economy experienced a slight GDP contraction of 0.1%, driven mainly by a sharp decline in the production sector, which contributed -0.11 percentage points. While services continued to support growth with a positive contribution of 0.05 points, it wasn’t enough to offset the downturn. Construction remained relatively neutral with a minor negative impact of -0.01 points. This pattern of weak production performance playing a key role in monthly downturns was also evident in previous months like April and October 2024.
Over the past year, GDP growth in the UK showed a mixed trend, largely influenced by the services sector, which typically made the largest positive contributions. However, persistent volatility in the production sector, especially in early and late 2024, has added pressure to economic performance. Despite some recovery in late 2024, January’s data indicates renewed challenges in industrial output as the UK entered 2025.
Monthly & Three-Month Services Contributions to UK GDP – January 2025
| Subsector | Monthly (%) | Three-Month (%) |
|---|---|---|
| Administrative and Support Service Activities | 0.10 | -0.02 |
| Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles | 0.07 | 0.05 |
| Human Health and Social Work Activities | 0.03 | 0.07 |
| Other Service Activities | 0.02 | 0.05 |
| Transportation and Storage | 0.01 | 0.01 |
| Public Administration and Defence; Compulsory Social Security | 0.01 | 0.02 |
| Activities of Households as Employers, etc. | 0.00 | 0.00 |
| Financial and Insurance Activities | -0.01 | 0.05 |
| Real Estate Activities | -0.01 | 0.03 |
| Education | -0.01 | -0.03 |
| Professional, Scientific and Technical Activities | -0.02 | 0.03 |
| Information and Communication | -0.03 | 0.02 |
| Arts, Entertainment and Recreation | -0.03 | -0.02 |
| Accommodation and Food Service Activities | -0.07 | 0.03 |
In January 2025, the UK services sector recorded modest monthly growth of 0.1%, following a stronger 0.4% rise in December 2024. Out of the 14 subsectors, six showed positive growth, seven experienced a decline, and one remained flat. Leading contributors to growth included Administrative and Support Services (+0.10%), Wholesale and Retail Trade (+0.07%), and Human Health and Social Work Activities (+0.03%). These gains were partially offset by declines in subsectors like Accommodation and Food Services (-0.07%) and Information and Communication (-0.03%).
The three-month picture was slightly more balanced, with most sectors contributing positively despite minor declines in areas such as Education and Arts, Entertainment, and Recreation. This mixed performance highlights ongoing challenges within the services sector, where consumer-facing industries continue to struggle while administrative, health, and trade services provide stability and moderate growth for the UK economy.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
