Britain’s economy expanded at a slower-than-expected rate in the second quarter of 2025, rising by 0.3% compared to 0.7% in the first quarter.
This growth, ahead of economists’ forecasts, was achieved despite the impact of new U.S.
trade tariffs and a weakening jobs market.
According to the Office for National Statistics, GDP contracted slightly in April but rebounded strongly in June, supported by growth in services, industry, and construction.
The Bank of England had forecast a much sharper slowdown to just 0.1%.
Economists pointed to increased public spending and stockpiling by businesses as drivers, while consumer spending remained muted and business investment fell 4%.
Finance minister Rachel Reeves faces pressure to balance budget goals with likely tax hikes this autumn, as borrowing costs rise and economic growth remains fragile.
The jobs market is under strain with payroll employment declining for a sixth consecutive month, although wage growth continues at a robust 5%.
The UK stands joint-second among G7 economies for Q2 growth, slightly ahead of the eurozone and Japan, but lagging behind the U.S.
and Canada.
Policy debates now focus on how to maintain momentum without placing new tax burdens on businesses and households.
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.
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.
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.
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.
Stronger GDP hasn’t eased the fiscal bind, as think-tanks warn of tough choices ahead of the Autumn Budget.
The UK economy expanded by 0.3% in Q2 2025, outpacing expectations and easing recession fears.
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
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.
BoE reduces rates as UK inflation spikes to 3.5%, signaling confidence in falling prices ahead.
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.
New data shows the UK's services sector experienced its largest drop in new orders in almost three years, adding to the pressure on the Bank of England to cut interest rates.
Business distress rises in UK, with weak retail sales and nearly 50,000 firms now at risk.
A survey by the Institute of Directors (IoD) reveals that business leader confidence in the UK economy has fallen to its lowest level since the index began in 2016.
The UK car market is on track for its best year since before the coronavirus pandemic, driven by strong demand.
