THE UK economy grew by just 0.1% in the three months to November 2025 with construction enduring its biggest fall in three years as experts warn “this is the economic version of treading water”.
This follows no growth in the three months to October and a growth of 0.1% in the three months to September 2025, Office for National Statistics (ONS) data shows.
In November, monthly GDP grew by 0.3%, following a fall of 0.1% in October 2025 and growth of 0.1% in September 2025.
In November, services grew by 0.3%, production grew by 1.1%, and construction fell by 1.3%.
In the three months to November, construction output fell by 1.1%, following a fall of 0.3% in the three months to October 2025.
Liz McKeown, a director at the Office for National Statistics, said: “The economy grew slightly in the latest three months, led by growth in the services sector, which performed better in November following a weak October.
“This was partially offset by a fall in manufacturing, where three-monthly growth was still affected by the cyber incident that impacted car production earlier in Autumn. However, data for the latest month show that this industry has now largely recovered.
“Construction contracted again, registering its largest three-monthly fall in nearly three years.”
Construction contracted again
Craig Fish, Director at Lodestone Mortgages, said the UK economy is struggling despite technically expanding.
He added: “On paper, the UK economy has technically grown but for households and businesses, it doesn’t feel like it. These GDP figures are tweaked and revised almost every month, which does little to build public confidence, much like the constant policy U-turns we’ve seen from the government in recent weeks.
“A 0.1% rise over three months is hardly a sign of a strong or growing economy, especially when construction output is falling sharply and manufacturing remains under pressure. For many people, costs are still high, confidence is fragile and day-to-day finances remain stretched.
“From a mortgage and rates perspective, this kind of weak, uneven growth supports the case for interest rates to fall gradually rather than stay higher for longer.
“But it also underlines why borrowers shouldn’t expect dramatic cuts overnight. The economy is bumping along, not booming and mortgage rates are likely to reflect that cautious reality rather than the headline figures alone.”
Economic version of treading water
Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, said households are not confident.
She continued: “This is the economic version of treading water — not sinking but not moving forward either. Services growth of 0.2% is soft by historical standards, so it doesn’t give households much to feel confident about.
“The construction decline is another confidence signal. It usually means projects are being paused or that there’s hesitancy to commit to longer term spending. It feels like the UK economy is stuck in a low gear.”
Emma Jones, Managing Director at Whenthebanksaysno.co.uk, said the drop in construction is worrying.
She added: “While growth of 0.3% in November is encouraging, the drag from construction is a major concern. The government’s housing target is increasingly looking like a pipe dream. The housebuilding sector simply isn’t delivering the homes it needs to help more people get on the ladder.”
Another confidence signal
Omer Mehmet, Managing Director at Trinity Finance, agreed that the figures on construction are dragging the potential of the UK economy down.
He continued: “Though there was some respectable growth in November, a month of uncertainty given the Budget, the fly in the ointment is the weakness of the construction sector. More than anything this country needs more homes, and they simply aren’t being delivered at the pace and scale they need to be.”
Meanwhile, David Belle, Founder and Trader at Fink Money, drew comparisons between the UK and wider European economies and the US: “It’s worth juxtaposing the UK’s growth to that of the US in the three months leading to September. Theirs was 1.1%, ours 0.1%. Germany is in a similarly dire situation, with 0% growth for the last quarter. What’s going on in Europe?
“Likely we can point to a completely bloated government where European nations keep adding public sector workers who are a drain on the private, tax paying, sector. We can point to the drain of net zero that drives up energy costs. And we can point to the general problem of vibes-based policy making where there is no further thought about the effects of said policies than ‘this sounds good.’
Missed AI opportunity
Colette Mason, Author & AI Consultant at Clever Clogs AI, said Britain should be using AI to help drive growth.
She added: “These GDP figures reveal what economists are missing: the UK’s worst-performing sectors are sitting on productivity gains they refuse to unlock. Construction fell 1.1%, its worst reading since March 2023, yet firms using AI properly cut risk assessments from 157 minutes to 36 minutes, and bid prep from three weeks to three days.
“Manufacturing wobbled whilst automotive achieves 60% AI adoption with 30% downtime reductions. The disconnect? Only 20% of built environment firms have AI policies, fewer than one in three train staff. Meanwhile mid-sized companies with strategy and training are widening the competitive gap. Services grew because they’re investing in collaborative intelligence.
“The laggards? 80% of construction workers use ChatGPT without training: shadow AI, panic prompting, zero governance and leadership. This anaemic growth is self-inflicted. The AI technology can deliver. The appetite for reform cannot. How much GDP are we sacrificing to half-baked or absent AI projects.”
