The Office for National Statistics reported that UK gross domestic product rose 0.3% quarter-on-quarter in Q2 2025, slowing from 0.7% in Q1 but still stronger than economists’ forecasts.
Services output increased by 0.4% and construction by 1.2%, while production contracted by 0.3%.
On an annual basis, GDP was 1.2% higher than a year earlier.
The ONS noted that some activity had been brought forward into late Q1 ahead of stamp duty changes and tariff announcements, creating a softer start to Q2 followed by a stronger June.
The data, which arrived a week after the Bank of England cut Bank Rate to 4.0%, complicates the policy outlook: growth is holding up better than expected even as inflation has re-accelerated toward 3.6%.
For markets, the upside surprise supported sterling and underpinned UK equities, with investors reassessing the pace of further BoE easing this year.
Politically, the figures offered Chancellor Rachel Reeves a modest tailwind as she prepares an Autumn Budget that must balance pro-growth investment with fiscal rules.
For households and firms, the mix of slower but positive growth and falling mortgage rates suggests a gradual improvement in conditions, although productivity and business investment remain key medium-term constraints highlighted by both the ONS tables and independent think-tanks reviewing the release.
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.
London stocks rose on hopes that a diplomatic solution to the Russia-Ukraine war is on the horizon, boosting investor confidence.
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.
Construction giant Balfour Beatty has reported a lift in profits and is optimistic about a boost from its UK construction projects.
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.
UK homebuilder Bellway has warned that its ability to meet housing demand is being hindered by 'frustrating' planning delays from local councils.
Britain's economy grew by 0.3% in the second quarter, a slowdown from the first quarter but better than anticipated by market analysts.
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.
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
Economists said the Q2 GDP surprise reduces pressure for rapid follow-up cuts after August’s split decision.
Stronger GDP hasn’t eased the fiscal bind, as think-tanks warn of tough choices ahead of the Autumn Budget.
UK economy grew 0.3% in Q2 2025, beating expectations amid tariff and jobs headwinds.
Monthly GDP rose 0.4% in June, with services, manufacturing and construction all contributing.
The pound strengthened this week as traders priced Fed easing and reassessed BoE cuts after resilient UK growth.
Surveyors reported improved buyer enquiries and stabilising prices in July, hinting that BoE easing is feeding through.
FX markets eyed UK jobs and pay data after the BoE’s split cut, with sterling consolidating recent gains.
Reports suggest the UK Chancellor and Prime Minister are preparing the public for potential tax increases and reforms in the upcoming November budget to address a significant spending gap.
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.
