UK GDP Annual Growth Rate Revised Higher in Q2

2025-09-30 06:42 By Joana Taborda 1 min. read

The British economy grew 1.4% year-on-year in Q2 2025, revised higher from 1.2% in the initial estimate and compared to an upwardly revised 1.7% rise in Q1.

Household spending grew 1.1%, the same as in the first estimate and compared to a downwardly revised 0.8% in Q1.

Government expenditure increased at a faster-than-expected 2.1% (vs 1.7% initially set) and compared to an upwardly revised 2.1% in Q1.

Also, exports were revised up (3.7% vs 3%), following a 4.6% jump in Q1 and import growth slowed more than initially anticipated (2.2% vs 3.3%), following a downwardly revised 7.4% in Q1.

Meanwhile, growth in gross fixed capital formation slowed less than expected (2.9% vs 1.3%), and was revised down for Q1 (2.9% vs 3.5%).

Business investment went up 3%, compared to a flat reading in the initial estimate and 5.8% in Q1.



News Stream
UK Annual Growth Tops Forecasts
The UK economy expanded by 1.2% year-over-year in Q2 2026, accelerating from 0.9% growth in Q1 and exceeding the expected 1.1% expansion, preliminary estimates showed. Growth was supported by a 1.5% increase in services output, with information and communication and professional, scientific and technical activities among the largest contributors. Production output rose 0.3%, driven by manufacturing and mining and quarrying, while construction output fell 2.0%. On the expenditure side, household consumption increased 1.0%, while government consumption rose 1.4%. Gross fixed capital formation climbed 2.7%, supported by higher investment in information and communication technology and other machinery and equipment. Business investment increased 0.8%. Trade provided a drag on growth as exports increased 2.4%, while imports rose 2.9%.
2026-08-13
UK Q1 Annual GDP Growth Revised Lower
The UK economy expanded by 0.9% year-over-year in Q1 2026, revised down from the preliminary estimate of 1.1% and matching the revised pace recorded in the previous quarter. Growth was driven by a 1.2% increase in services output, while production declined 0.1% and construction fell 1.6% from a year earlier. On the expenditure side, household consumption rose 0.9%, supported by spending on restaurants, hotels, household goods, and miscellaneous items. Government consumption increased 2.7%, reflecting higher public administration, defense, and health spending, while gross fixed capital formation climbed 1.6%, driven by investment in buildings, transport equipment, and machinery. Meanwhile, exports increased 0.6%, but imports rose 2.7%, weighing on net trade.
2026-06-30
UK Annual Growth Beats Forecasts
The UK economy expanded by 1.1% year-over-year in Q1 2026, accelerating from 1.0% in the previous quarter and surpassing market expectations of 0.8%, according to preliminary estimates. Growth was driven by a 1.4% rise in services output, while production remained flat and construction declined by 1.3%. On the expenditure side, household consumption grew by 0.9% (up from 0.5% in Q4 2025), and government spending increased by 1.4% (from 1.0%). However, gross fixed capital formation slowed to 0.5% (down from 4.0%), partly due to a drop in business investment. Net trade weighed on growth as imports outpaced exports.
2026-05-14