GDP edged up 0.3% in Q2, outperforming the 0.1% forecast despite a sharp slowdown from Q1’s 0.7% pace.
Britain’s economy expanded by 0.3% in the second quarter of 2025, outperforming forecasts of just 0.1% growth despite a marked deceleration from the 0.7% increase recorded in the first quarter.
A sharp rebound in June—when monthly GDP rose by 0.4% following a dip in May—helped buoy the overall Q2 performance. Strength came chiefly from the services sector, along with gains in construction and industrial output.
Finance Minister Rachel Reeves welcomed the outcome as “positive with a strong start to the year and continued growth in the second quarter,” adding: “I know that the British economy has the key ingredients for success but has felt stuck for too long.”
Still, underlying challenges persist. Business investment slipped, and the modest growth outlook complicates fiscal strategy, with Chancellor Reeves facing pressure to address a sizeable budget gap in her upcoming Autumn Budget.