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UK economy grows by better-than-expected 0.3% in second quarter
The U.K. economy's 0.3% growth in Q2 surpassed expectations despite inflation hitting 3.6% and ongoing business uncertainty, according to the Office for National Statistics.
- The UK economy grew by 0.3% in the second quarter of 2025, according to preliminary ONS estimates released on Thursday.
- This growth followed a downturn in April and May, partly due to economic activity being shifted earlier into February and March in anticipation of stamp duty and tariff adjustments.
- Growth in the quarter was driven by services, including computer programming, health, and vehicle leasing, alongside a strong recovery in June when the economy grew 0.4%.
- Economic growth rose by 0.3%, surpassing forecasts of 0.1%, following the central bank's decision to lower its benchmark interest rate from 4.25% to 4%, alongside inflation increasing to 3.6% in June.
- BOE Governor Andrew Bailey highlighted that labor market conditions seem to be weakening, while the MPC is committed to ensuring inflation steadily returns to its 2% medium-term goal amid a carefully balanced economic outlook.
64 Articles
64 Articles
The British economy slows down, but manages to grow above expectations: a 0.3% increase was noted in the second quarter of the year, according to the National Bureau of Statistics (ONS). Part of this growth, higher than the expectations of analysts, is due to the upturn in construction. The services sector, the driving force of the country's activity, only expanded 0.4% between April and June, while industrial activity fell 0.3%. On the other ha…
UK economy sees unexpected growth in Q2
The UK economy grew 0.3% in the second quarter of 2025, slowing from the first three months of the year but beating expectations. The British government has made boosting the country’s sluggish economy a priority, but in the year since its election has had only moderate success. Recent months have seen some better news, and slowing inflation has allowed the Bank of England to cut rates, meaning average mortgage rates have dipped below 5% for the…
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