UK economy slows less than expected in second quarter

14/8/2025 14:56

Britain's economy grew by a faster-than-expected 0.3% in the second quarter of 2025 after growth of 0.7% in the first three months of the year, offering a boost to finance minister Rachel Reeves, official figures showed on Thursday.



Economists polled by Reuters, as well as the Bank of England, had forecast 0.1% growth in gross domestic product for the April-June period.



Thursday's data from the Office for National Statistics showed British GDP rose by 0.4% in June alone after a 0.1% fall in output in May due to surprisingly strong growth across services, industrial output and construction.



Output in the second quarter overall was up 1.2% from the same period last year compared to a median forecast from economists for 1.0% growth.



Sterling rose slightly against the dollar after the data.



Reeves has been keen to highlight that British economic growth in the first quarter of the year was the fastest in the Group of Seven large advanced economies, but the outlook for the second half of 2025 is more subdued.