• Latest
  • Trending
  • All

Growth slows to 0.3% in second quarter but beats forecasts

August 17, 2025

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026

At least 27 pupils and teacher killed after Pakistan school roof collapses

October 15, 2026

Russia accuses Ukraine of attacking oil refinery after Zelensky says strikes to resume

October 15, 2026

Brazil’s Congress approves shorter working week in win for Lula

October 15, 2026

Hundreds of IDF investigations into killings without public outcome, BBC Verify finds

October 15, 2026

US teenager appears in court over alleged Hindu temple shooting plot

October 15, 2026

NI health: Hospital doctors to strike as pay dispute continues

October 15, 2026

Why is Starlink internet so important in the Ukraine war?

October 15, 2026

Thousands of NI workers to get pay bump as Real Living Wage rises

October 15, 2026

Burnham had two hospitality dinners with Man City chairman, deleted records show

October 15, 2026

Anthropic flags revenue surge to investors ahead of stock market debut

October 15, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Thursday, October 15, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Trump calls off livestream of Fort Hood attacker’s execution by firing squad

    UK threatens visa bans for Eritrea over migrant return policy

    At least 27 pupils and teacher killed after Pakistan school roof collapses

    Russia accuses Ukraine of attacking oil refinery after Zelensky says strikes to resume

    Brazil’s Congress approves shorter working week in win for Lula

    Hundreds of IDF investigations into killings without public outcome, BBC Verify finds

    US teenager appears in court over alleged Hindu temple shooting plot

    Sydney teen charged with murder of boy who was shot in face

    Republic of Ireland: Public sector strike begins

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Burnham had two hospitality dinners with Man City chairman, deleted records show

    Sussex time capsule celebrates 100 years of Winnie-the-Pooh

    We are behind you and that will not change, PM tells Zelensky

    Swimmer Archie Goodburn thanks prime minister as brain cancer review announced

    Ji-sung Eom racist abuse: Millwall boss Alex Neil criticised for stoppage comments

    Waterford: Vigil held after murder of four family members

    Zelensky and Burnham to meet in Downing Street

    Family pays tribute to ‘warm and engaging’ man killed in tiger attack

    Man killed in tiger attack identified as William Chapman

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Thousands of NI workers to get pay bump as Real Living Wage rises

    Netflix to shed 1,000 jobs in steepest cuts since 2022

    US inflation rises more than expected – here’s what is happening with prices

    Shropshire heating oil users face tough choices as prices rise

    Poundland in rescue talks as owners seek buyer

    Three things we’ve learnt about the UK economy from the IMF

    Cost-of-living struggles inspire new supermarket in Newcastle-under-Lyme

    Lego fraudster among last year’s most high-profile insurance scammers

    Healey faces £35bn Budget challenge to meet spending pledges, says think tank

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Business Economy

Growth slows to 0.3% in second quarter but beats forecasts

August 17, 2025
in Economy
7 min read
251 3
0
494
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Tom Espiner

BBC business reporter

Getty Images Stock photo shows a maker hammering away at a piece of leather in a workshop.Getty Images

UK economic growth slowed between April and June, according to official figures, but came in better than expected.

The economy expanded by 0.3%, down from 0.7% in the first three months of the year, the Office for National Statistics said.

The biggest contribution came from services while the construction industry also grew.

The government has made boosting economic growth a key priority and the latest data beat forecasts of 0.1% expansion, which would have been near stagnation.

Chancellor Rachel Reeves said the figures “beat expectations” but added there was “still more to do” so people in all parts of the country benefit from growth.

A Bar chart showing quarterly growth in UK gross domestic product (GDP) from April to June 2023 to 2025. The figures are as follows: Q2 2023 0%; Q3 2023 -0.1%; Q4 2023 -0.2%; Q1 2024 0.9%; Q2 2024 0.5%; Q3 2024 0%; Q4 2024 0.1%; Q1 2025 0.7%; Q2 2025 0.3%.

The economy performed better than expected in June, and the ONS also revised up figures for April – instead of shrinking by 0.3%, it now said the economy contracted by 0.1%.

Experts suggested that hot, dry weather helped lift activity in the construction industry, which expanded by 1.2% in the three months to June.

In the services sector, computer programming including consultancy, software installation and disaster recovery helped push up growth.

Vehicle rentals and health services such as doctors’ surgeries, hospitals and nursing homes also boosted the economy.

Retailing dragged on growth over the period but picked up towards the end.

Compared with other members of the G7 – the world’s richest nations – the UK economy grew the fastest in the first three months of the year, but not the second.

However, taken together, the UK may have had the fastest growth in the first half of 2025.

The resilience of the UK economy may prompt the Bank of England to be more reluctant about cutting interest rates, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

She said policymakers may choose to hold off until inflation begins heading back to the Bank of England’s 2% target.

Last week, the Bank raised its inflation forecasts and now expects the pace of price rises to peak at 4% later this year before receding to the target in 2027.

But Ruth Gregory, deputy chief UK economist at Capital Economics, said it was doubtful the country “will maintain this pace of growth” between July and September.

“The weak global economy will remain a drag on UK growth for a while yet,” she said.

“The full drag on business investment from April’s tax rises has yet to be felt. And the ongoing speculation about further tax rises in the Autumn Budget will probably keep consumers in a cautious mood.”

Earlier this month, the National Institute of Economic and Social Research think tank said taxes would have to rise in the autumn if Reeves wants to meet her self-imposed borrowing rules and avoid missing a target the government has set itself by £41.2bn.

Figures from the ONS showed that business investment fell sharply, down 4%, compared with growth of 3.9% in the first three months of the year. Household spending also dipped.

‘Unexpected sunshine’

Iain Hoskins, who owns several venues in Liverpool, said he was “very worried” after the last Budget, with increased National Insurance Contributions adding £100,000 to his costs.

However, he said he was “feeling more positive than we have done for the last few years,” thanks largely to better weather and consumer confidence.

Iain Hoskins stands outside one of his hospitality venues in Liverpool, wearing a navy t-shirt

Iain Hoskins says falling interest rates have boosted customer spending

“The quarter that we are talking about, we had a very early summer and often that period can be a complete washout,” he said. “Unexpected sunshine really did bring people out in force.

“Interest rates going down has really helped: more money in peoples’ pockets. That is fundamental.”

The Bank of England has cut interest rates five times over the past 12 months, taking borrowing to 4%.

Goldman Sachs, the US investment bank, lifted its forecast for UK annual growth from 1.2% to 1.4%.

The chancellor said the economy “has been stuck for too long”.

“We are trying to get it out of the rut of the last few years with anaemic growth, poor productivity and living standards going backwards,” she said.

However, Conservative shadow chancellor Mel Stride accused her of “economic vandalism” while Liberal Democrat Treasury spokeswoman Daisy Cooper said: “Snails would scoff at the pace that our economy is growing.

“The Conservative Party led us into this economic quagmire but this Labour government has failed to break from the years of mismanagement.”

Trump trade

James Smith, an economist at ING Bank, told the BBC’s Today programme that the figure for the April-to-June period was “not bad”.

In the first three months of the year, economic growth was “boosted by firms trying to get ahead of Donald Trump’s tariffs”, he said, as well as homebuyers rushing to complete before a change in stamp duty thresholds in April.

“Those factors were always going to be a drag, so the fact that we’ve ended up with 0.3% growth in an environment of global uncertainty isn’t really a bad result,” he said.

Separate trade figures on Thursday showed British goods exports to the US dropped to their lowest level in more than three years in June due to Trump’s tariffs.



Source link

Tags: beatsforecastsgrowthquarterslows

Related Posts

US inflation rises more than expected – here’s what is happening with prices

October 14, 2026
0

Inflation has risen to 3.7% in the year to September, which is a higher-than-expected increase fuelled by petrol prices.Vehicle...

Three things we’ve learnt about the UK economy from the IMF

October 13, 2026
0

There is increased concern about how much money countries are borrowing, but the IMF said the UK is doing...

Healey faces £35bn Budget challenge to meet spending pledges, says think tank

October 12, 2026
0

Chancellor John Healey faces having to find £35bn to avoid cuts to public spending while meeting defence promises in...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    680 shares
    Share 272 Tweet 170
  • Belgian footballer arrested in cocaine investigation

    535 shares
    Share 214 Tweet 134
  • Next to raise prices to help pay for rising wage costs

    534 shares
    Share 214 Tweet 134
  • South Wales Police officers injured, one arrested

    526 shares
    Share 210 Tweet 132
  • ‘It stirred the people to breathless wonder and scalding abuse’: The tumultuous history of the Sydney Opera House

    521 shares
    Share 208 Tweet 130
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026

At least 27 pupils and teacher killed after Pakistan school roof collapses

October 15, 2026

Categories

World

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026
0

US President Donald Trump has called off plans to livestream the execution of former US army psychiatrist Nidal Hasan...

Read more

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.