UK Economy enters 2026 on shaky ground - but brighter prospects aren’t dead yet

Martin Beck, Chief Economist | Economic Consulting and Analysis

The UK ended 2025 with quarterly growth stuck at just 0.1%, as subdued consumer spending and a sharp fall in business investment left the economy lacking momentum. However, falling inflation, improving business surveys and the prospect of further rate cuts suggest 2026 could prove somewhat stronger than the current consensus.