FX.co ★ UK Wage Growth Slows

In the UK, regular pay, excluding bonuses, increased by 4.8% year-on-year, reaching GBP 680 per week during the three months leading up to July 2025. This represents the smallest increase since May 2022 and follows a 5% rise in each of the preceding two months, aligning with market expectations. The deceleration in wage growth affected both the public sector, where growth slowed to 5.6% from 5.7%, and the private sector, which saw a decrease from 4.8% to 4.7%. By industry, the most significant annual wage increases were observed in the wholesale, retail, hotels, and restaurants sectors at 6.4%, followed by the services sector at 4.9%, manufacturing at 4.5%, construction at 3.9%, and finance and business services at 3%. After adjusting for inflation, real wages experienced a 0.7% rise.