The UK economy experienced a 0.3% growth in the second quarter of 2025 compared to the previous quarter, aligning with initial estimates and following a 0.7% increase in the first quarter. This growth was mainly propelled by the services sector, which grew by 0.4% compared to 0.7% in the previous quarter, with notable contributions from computer programming, consultancy, and related activities, showing a substantial 4.5% rise, as well as the construction industry, which grew by 1%. Conversely, the production sector recorded a sharper-than-anticipated decline of 0.8%, compared to a 0.6% drop previously, largely due to decreased activity in electricity, gas, steam, and air conditioning supply, which fell by 7.2%.
From an expenditure perspective, household consumption showed a modest increase of 0.1% compared to 0.3% earlier, driven by spending on miscellaneous goods and services, transportation, and the hospitality industry, including restaurants and hotels. Government expenditure saw a notable rise of 1.3%, reversing a 0.2% decline from the previous quarter. There was also an upward revision in gross fixed capital formation, which increased by 0.5%, contrary to an initial estimate of a 1.1% decline, following a 1.9% growth in the first quarter. However, business investment experienced a contraction of 1.1%, an improvement over the previously estimated 4% decline, contrasting with a 4% increase in the first quarter. Meanwhile, exports fell by 0.2% compared to a 1.7% increase in the prior quarter, and imports remained unchanged, against a previous rise of 1.2%. Year-on-year, the GDP grew by 1.4%, outperforming the preliminary estimate of 1.2%.
