Thu, 14 Aug 2025

Thu, 14 Aug 2025 UK economic growth slows but beats forecasts

The economy expanded by 0.3% in the April-to-June period, ahead of economists' expectations.

* UK economy grew by 0.3% between April and June, beating expectations of 0.1%
* Services sector was biggest contributor to growth, with computer programming and vehicle rentals driving expansion
* Construction industry also saw growth, likely boosted by hot and dry weather
* Retailing dragged on growth, but picked up towards the end of the period
* UK economy grew at its fastest pace in the G7 during the first three months of this year, but not the second quarter
* Economists suggest that business investment may be affected by April's tax rises and ongoing speculation about further tax increases
* Household spending and business investment fell sharply during the period, while hot weather boosted consumer confidence and economic activity
* Chancellor Rachel Reeves said the figures "beat expectations" but acknowledged there was still more to do to ensure growth benefits all parts of the country.
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