According to data released by the UK Office for National Statistics on February 12th, the UK economy is expected to grow by 1.3% in 2025, driven by industries such as services and manufacturing. By industry, in 2025, the output of the UK service industry will grow by 1.4%, manufacturing by 0.2%, and construction by 1.8%. Due to the easing of fiscal policy uncertainty, the UK economy is expected to recover in early 2026 compared to the end of last year. According to the latest data from Standard&Poor's, in January 2026, the Purchasing Managers' Index (PMI) for the UK manufacturing industry rebounded from 50.6 in December last year to 51.8, the highest level since August 2024; The service sector PMI expanded from 51.4 in December last year to 54, the highest level since August 2025. The manufacturing and service industries have become important driving forces for the improvement of the UK economy. The survey results recently released by the British Retail Consortium show that British consumers' expectations for macroeconomic and private financial conditions in the next three months have rebounded, and the personal consumption sector has begun to recover. However, inflation in the UK is still above the target level, and the willingness of businesses to invest is not strong. The UK Consumer Price Index (CPI) rebounded from 3.2% in November last year to 3.4% in December, while the Service Price Index rose to 4.5%; In January 2026, food prices in the UK increased by 3.9% year-on-year. At the same time, the proportion of UK debt reached 96.3%, seriously squeezing the government's investment in education, health care and other key areas. To boost the economy, the UK government significantly reduced social welfare last year and planned to simplify administrative procedures, expand housing and related infrastructure construction, striving to complete the construction of 1.5 million housing units by 2029. The UK Treasury has pledged to expand spending in areas such as healthcare, defense, housing, and transportation, with the National Health Service receiving an additional budget of £ 29 billion annually. In June 2025, the UK government launched a 10-year industrial development strategy, focusing on supporting the development of emerging fields such as advanced manufacturing, clean energy, creative industries, digital industries, and life sciences, with the aim of enhancing the country's economic competitiveness by promoting diversified industrial development. The UK government claims that this move is expected to create up to 250000 high skilled green jobs. (New Society)
Edit:He Chuanning Responsible editor:Su Suiyue
Source:People's Daily
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