The UK experienced a GDP growth of 0.4 percent in June 2025, buoyed mainly by unexpected gains in services and construction sectors. This growth helped offset previous contractions in April and May, resulting in a cumulative growth of 0.3 percent for the second quarter. Growth was largely attributed to government spending, with household consumption growing at a slower pace and a drop in gross fixed capital formation. Projections indicate a third quarter growth of 0.5 percent, influenced by fiscal policies while acknowledging potential risks from public finances and geopolitical factors.
The latest data indicates a GDP growth of 0.4 percent in June 2025, largely propelled by above-expected performance in services and construction sectors, stabilizing overall economic activity despite earlier contractions.
While the second quarter's GDP growth was primarily fueled by government consumption, household consumption showed slower growth and gross fixed capital formation experienced a contraction compared to prior quarters.
Looking forward, there is an anticipated GDP growth of 0.5 percent for the third quarter, supported by fiscal policies amidst fragile external conditions, despite ongoing uncertainties in the business environment.
The public finances face significant risks, with potential fiscal tightening in the upcoming Autumn Budget posing challenges and potentially dampening economic activity throughout the year.
Collection
[
|
...
]