UK GDP Growth Above Expectations

2025-08-14 06:12 By Joana Taborda 1 min. read

The British economy grew 0.3% qoq in Q2 2025, slowing from a 0.7% expansion in Q1 but surpassing forecasts of just 0.1%, according to preliminary estimates.

The moderation partly reflects activity being brought forward to February and March ahead of April’s stamp duty changes and the announcement of new US tariffs.

In Q2, growth was fuelled by a 0.4% rise in services, led by computer programming and consultancy (+4.1%).

Construction climbed 1.2%, while production fell 0.3% due to utilities (-6.8%) and mining (-0.3%), partly offset by a 0.3% increase in manufacturing.

On the expenditure side, growth was driven mainly by a 1.2% rise in government consumption, particularly in health (vaccinations) and public administration and defence.

Gross capital formation increased on the back of higher changes in valuables, inventories, and alignment adjustments, but business investment slumped 4%.

Household spending rose a modest 0.1% and exports increased 1.6%, outpacing the 1.4% rise in imports.



News Stream
UK GDP Growth Unrevised at 0.1% in Q4
The British economy expanded 0.1% on quarter in the last three months of 2025, the same as in the previous quarter and in line with the preliminary estimate. The production sector led the growth, rising 1.2%, led by a 4% surge in manufacturing and repair and a 3.6% rise in machinery and equipment. On the other hand, the construction sector decreased by 2% and the services sector showed no growth, weighed down by a 1.4% drop in professional, scientific, and technical activities. On the expenditure side, increases were seen for household consumption (0.1%), led by transport, miscellaneous, housing, and clothing and footwear while net tourism made little contribution to growth; government spending (0.1%); gross fixed capital formation (0.2%) while business investment tumbles 2.5%. Exports were down 0.7% led by decreases in machinery and transport equipment, chemicals, material manufactures and fuels while imports went up 0.7%. Year-on-year, the GDP increased 1%.
2026-03-31
UK Economy Grows 0.1% in Q4
The UK economy grew by 0.1% in the fourth quarter of 2025, matching the pace recorded in the previous three-month period and coming in slightly below market expectations of 0.2%, according to preliminary estimates. Production output rose 1.2%, reversing a 0.7% decline in Q3. Manufacturing increased by 0.9%, largely supported by gains in other manufacturing and machinery and equipment, as car production normalized following August’s cyber incident. In contrast, the dominant services sector showed no growth, after expanding by 0.2% in the third quarter. Business-facing services stagnated, while consumer-facing services posted modest growth of 0.2%. Construction weighed on overall performance, with output contracting 2.1% after a 0.4% rise in Q3. On an annual basis, GDP increased by 1.0% in Q4, falling short of expectations for 1.2% growth. For 2025 as a whole, the UK economy expanded by 1.3%, slightly above the 1.1% growth recorded in 2024.
2026-02-12
UK Q3 GDP Growth Confirmed at 0.1%
The UK economy expanded by just 0.1% in Q3 2025, confirming preliminary estimates and slowing from 0.3% growth in the previous quarter. The production sector fell 0.3%, led by manufacturing (-0.8%) and mining and quarrying (-0.4%). Within manufacturing, transport equipment declined 4.7%, with motor vehicles, trailers, and semi-trailers tumbling 10.3% after a cyberattack severely disrupted operations at Jaguar Land Rover in September. Meanwhile, services rose 0.2%, supported by financial, insurance, and real estate activities, while professional and technical services declined. Construction output grew 0.2%, driven by repair and maintenance, though new work fell. On the expenditure side, household consumption increased 0.3%, government spending rose 0.4%, and business investment rebounded 1.5%. On an annual basis, GDP expanded 1.3%, slightly down from 1.4% in Q2, in line with initial estimates.
2025-12-22