The UK economy (GDP) grew by 0.3% in the second quarter of 2025, outperforming forecasts of just 0.1% growth (not difficult).
This marks a slowdown from the robust 0.7% expansion seen in Q1, but June’s rebound helped offset weaker activity in April and May 2025.
📊 Key Highlights:
- Monthly growth: +0.4% in June, following a slight dip in May.
- Sector drivers: Services led the charge, with gains in computer programming, health, vehicle leasing, and scientific R&D. Construction also rose, while production dipped slightly.
- Updated data: April’s contraction was revised to show a milder decline than previously estimated.
💬 Expert commentary:
- Economists caution that the momentum may not last, citing a softening labour market and inflationary pressures.
- The Bank of England recently cut interest rates to 4%, aiming to balance inflation control with economic support.
- Chancellor Rachel Reeves welcomed the figures but stressed the need for deeper reform to unlock long-term growth.
Despite the sunny headline, analysts remain wary of headwinds from global weakness, tax changes, and cautious consumer sentiment.
The outlook for Q3 is more muted, with hopes of a sharp rebound likely to be tempered.
Data from the ONS