It marks a welcome pick-up after zero growth in the previous three months, but experts said the performance remained lacklustre and there are concerns the UK will continue to see anaemic growth over the year ahead.
The Bank of England, last week, halved its forecast for growth to just 0.75% for 2025 and the UK’s fiscal watchdog, the Office for Budget Responsibility (OBR), is expected to reveal big downgrades when it reports back alongside the spring statement on March 26.
Experts have said that big downgrades to OBR growth forecasts could wipe out her £10 billion “headroom” — spare money against its spending plans – leaving her with little option but to cut spending or even resort to tax hikes.
The Office for National Statistics (ONS) said gross domestic product (GDP) edged 0.1% higher between October and December, defying forecasts by analysts and the Bank of England for a 0.1% contraction in the quarter.
The growth came after the economy expanded by a better-than-expected 0.4% in December, which was the fastest monthly growth since March last year.
