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The ONS’s monthly GDP estimate showed a 0.4% expansion in June 2025, capping a quarter in which underlying momentum cooled but remained positive.
Within the breakdown, services continued to lead overall activity, supported by business-facing segments, while manufacturing grew 0.5% on the month, helped by pharmaceuticals and machinery/ equipment.
Construction output also increased as infrastructure and repair & maintenance work offset weakness elsewhere.
The release, which aligns with the quarterly first estimate, suggests demand held up into the summer despite tight household budgets and a still-elevated inflation rate.
Markets took the data as confirmation that the UK is slowing, not shrinking, and that growth resilience could temper how quickly the Bank of England follows up on its August rate cut.
For corporates, the breadth of gains is encouraging for earnings into H2, particularly for firms exposed to domestic services and selected industrial niches.
However, the ONS cautioned that rounding and revisions mean monthly contributions may shift.
For policy makers, the figures strengthen the case for targeted supply-side measures to sustain momentum without reigniting inflation pressures, including planning reform and investment incentives that the Treasury has trailed ahead of the Autumn Budget.




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