Official data from the Office for National Statistics (ONS) shows that the UK economy expanded by 0.3% in the second quarter of the year.
This marks a deceleration from the 0.7% growth seen in the first quarter but is a positive surprise for economists, who had only predicted a 0.1% increase.
The stronger-than-expected performance was primarily driven by a robust showing in June.
The figures provide some welcome news for the Labour government, which has made boosting economic growth its top priority.
The growth, even if slower, provides a solid foundation and bolsters public finances through higher tax revenues.
This could potentially ease the pressure on Chancellor Rachel Reeves to implement new, and potentially unpopular, tax-raising measures in her Autumn Budget.
The government has acknowledged the figures as 'positive' but maintains that there is 'more to do' to sustain and accelerate growth.
Analysts point out that the UK economy continues to face headwinds from higher taxes on businesses and global trade uncertainties, but the Q2 data suggests a certain level of resilience and a potential for a sustained, albeit modest, economic recovery.
Timber and materials distributor James Latham has reported a rise in revenue, citing strong demand for timber products.
Fishing tackle and equipment retailer Angling Direct has reported a stronger-than-expected first-half trading performance, boosted by a solid UK performance.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
The FTSE 100 index reached a new closing high, boosted by hopes of a resolution to the Russia-Ukraine conflict and strong performance from retailers.
Despite earlier predictions of a fall, UK households are now being warned that their energy bills are expected to rise from October.
Projections suggest that UK pensioners could see a significant increase of up to £500 in their state pension next year under the 'triple lock' policy.
A UK spy chief has revealed that the government has withdrawn its previous demands for access to US-based Apple user data.
A UK spy chief has revealed that the government has withdrawn its previous demands for access to US-based Apple user data.
London stocks rose on hopes that a diplomatic solution to the Russia-Ukraine war is on the horizon, boosting investor confidence.
The UK's water regulator, Ofwat, has come under fire for its 'chaotic' and 'unfit' approach to managing the country's water and sewage companies.
A new survey reveals that tenants in England are spending an 'unaffordable' 36% of their income on rent, highlighting the country's severe housing affordability crisis.
The average asking price for a UK property has fallen by 1.3% in August, as sellers price their homes more competitively during a typical summer dip.
A new report suggests that the UK is falling behind the European Union in implementing new environmental regulations in the years following Brexit.
Construction giant Balfour Beatty has reported a lift in profits and is optimistic about a boost from its UK construction projects.
Leading UK auditors have warned that the government's plans for tax reform could be 'rushed' and lead to significant snags and unintended consequences.
New data reveals a 'heartbreaking' trend with more than 200 pubs across the UK closing their doors in just the last six months, highlighting the severe challenges facing the hospitality sector.
Construction and infrastructure giant Balfour Beatty has reported a lift in its profits, citing a strong performance from its UK-based construction and infrastructure projects.
A UK minister has stated that the government is willing to take a 'different approach' in ongoing talks with the US over trade tariffs.
UK homebuilder Bellway has warned that its ability to meet housing demand is being hindered by 'frustrating' planning delays from local councils.
Chancellor Rachel Reeves has pledged to make boosting the UK's productivity a key focus of her upcoming Autumn Budget.
An explainer has been published on 'Pisces', a potential new UK stock market that could provide an alternative to the London Stock Exchange's main market.
UK economy grew 0.3% in Q2 2025, beating expectations amid tariff and jobs headwinds.
The UK economy expanded by 0.3% in Q2 2025, outpacing expectations and easing recession fears.
Monthly GDP rose 0.4% in June, with services, manufacturing and construction all contributing.
The Bank of England's Monetary Policy Committee voted to cut the base rate by 0.25 percentage points to 4.0%, marking the fifth consecutive cut in a year.
A new report highlights that a significant number of UK exporters are suffering from the latest wave of tariffs imposed by the US.
Survey shows 95% of UK businesses were trading in July, with caution on staff and hours due to cost pressures.
An editorial from The Guardian argues that the shrinking of the London Stock Exchange is a symptom of a 'broken growth model' and low business investment in the UK.
The UK's construction sector experienced its sharpest decline in activity in July since the beginning of the COVID-19 pandemic, according to new data.
