"The UK economy slowed sharply in the second quarter of 2025, with official figures confirming growth of just 0.3% between April and June, a marked deceleration from the 0.7% expansion in the first quarter. Data from the Office for National Statistics (ONS) showed that while the latest quarterly figure was unrevised, revisions to earlier estimates suggest growth in much of 2024 was stronger than first thought, even as momentum weakened heading into this year."
"Household disposable income per person rose 0.2% in Q2, rebounding from a 0.9% fall in Q1, driven by a £4.4 billion rise in wages and a £4 billion fall in income tax liabilities related to the 2023-24 tax year. However, households chose to save more of that income, with the saving ratio rising to 10.7% from 10.5%, signalling greater consumer caution. Spending growth remained flat, while consumer-facing services saw a slight fall in output despite overall services growth of 0.4%."
GDP grew 0.3% in Q2 2025, down from 0.7% in Q1, indicating a sharp slowdown. Annual GDP growth for 2024 remained at 1.1% after revisions. Revisions showed Q1 2024 growth reduced from 0.9% to 0.8%, Q2 raised from 0.5% to 0.6%, Q3 from 0.0% to 0.2%, and Q4 from 0.1% to 0.2%. Household disposable income per person rose 0.2% in Q2, supported by a £4.4bn rise in wages and a £4bn fall in income tax liabilities. The saving ratio rose to 10.7%, spending growth was flat, services grew 0.4% overall, production fell 0.8% and construction rose 1%.
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