UK GDP Annual Growth Rate Unrevised at 1.3%

The UK economy expanded 1.3% year-on-year in Q3 2025, slightly down from 1.4% in Q2, confirming preliminary estimates. This marks the slowest annual growth in a year, as household consumption slowed to 0.7% (vs 1% in Q2) and government spending eased to 1.6% (vs 1.9%). Gross fixed capital formation also grew more slowly, rising 2.9% versus 3.3% in Q2, with business investment up 2.7% from 3.2% previously. Net trade weighed on growth, with imports surging 5% (vs 2%) and exports rising 2.7% (vs 2.3%). On the production side, services growth eased slightly to 1.4% (vs 1.5%), production fell 0.2% (vs a 0.2% decline in Q2), while construction growth picked up to 2.2% (vs 2%).

The UK economy expanded 1.3% year-on-year in Q3 2025, down from 1.4% in Q2 and slightly below the market forecast of 1.4%, according to preliminary estimates. Fixed investment accelerated to 3.8% (vs. 2.9%), despite a slowdown in business investment to 0.7% (vs. 3.0%). Household consumption rose 0.7% (vs. 1.1%), and government spending slowed to 1.9% (vs. 2.1%). Net trade weighed on growth as imports surged 4.7% while exports increased only 2.6%. By sector, services growth held at 1.6%, construction eased to 1.5% (vs. 1.9%), and production continued to contract, declining 0.9% (vs. -0.4%).

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.