Overview
- The Office for National Statistics, which reported Tuesday, kept fourth‑quarter growth at 0.1% and raised the full‑year rate to 1.4%.
- Services showed no growth in the fourth quarter, while production rose and construction fell, underscoring a loss of momentum at year end.
- Real household disposable income per person fell over 2025 to £6,353 from £6,413 a year earlier, even as the saving rate climbed to a high 9.9%.
- The OECD now projects UK growth of 0.7% in 2026 after its largest downgrade among major economies, citing heightened risks from Middle East trade and energy shocks.
- Energy markets have surged since the conflict began, with UK gas up more than 70% and Brent above $115 a barrel, and the Treasury says its plan will protect public and family finances as households are partly shielded by a price cap until July while many firms face higher costs.