PwC comments on the latest ONS GDP figures - February 2026

Commenting on the latest Office of National Statistics GDP data, Jake Finney, Senior Economist at PwC, says:

“The UK scraped through the end of 2025 with growth intact, as GDP rose by 0.1% in Q4, matching the previous quarter. Growth is not booming, but with monetary policy still tight, the labour market cooling and geopolitical instability still elevated, maintaining momentum points to a degree of underlying resilience.

“Despite subdued headline growth, sharper weakness in the payroll employment data suggests productivity may finally be picking up after years in the doldrums. What is less clear is the extent to which this reflects emerging strength in the economy, perhaps from early gains in AI adoption, or a tougher business environment forcing less productive firms out of the market. Either way, a sustained revival in productivity is needed. With population growth likely to slow in the years ahead, the UK will need to generate growth from higher output per worker, not simply from more workers.

“There are reasons to be cautiously optimistic about the year ahead. The strong PMI print for January indicates that the economy started 2026 on firmer footing. A combination of lower inflation, looser monetary policy and a more stable geopolitical backdrop could provide the foundations for a stronger growth outlook.”