#uk-gdp

#uk-gdp

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.

The ONS said the economy grew by 0.2 per cent on a rolling three-month basis, a measure it will now prioritise to provide a clearer picture of performance given the volatility of monthly data. July's weakness was driven by a 0.9 per cent fall in production, including a 1.3 per cent decline in manufacturing, pushing industrial output to its lowest level since January.

After seeing a strong beat for GDP in June, surprisingly strong retail sales figures and upbeat survey data over the summer, optimists would be forgiven for thinking the UK economy was defying the doubters. That wasn't to be this month, the UK economy is firmly back in the slow lane. Stagflation remains the key challenge for policy makers. With anaemic growth and inflation running at 3.8%, the Bank of England may feel its hands are tied.

The second successive monthly fall in UK GDP in May confirms that the strong growth of 0.7% reported in the first quarter was just a flash in the pan.