UK economy continues to show sluggish growth
The UK economy expanded in line with forecasts during the second quarter of 2025, according to figures released by the Office for National Statistics on Tuesday (30 September).
Between April and June, real GDP rose by 0.3%, matching the ONS’s initial estimate. This marks a slowdown from the 0.7% growth recorded in the first quarter and is the latest indicator of the UK’s sluggish economy.
The increase was mainly supported by a 0.4% rise in services and a 1.0% boost in construction, while output in the production sector contracted by 0.8%. Households also saw some improvement, with real disposable income per person climbing 0.2% after a 0.9% decline in the previous quarter.
On a per-capita basis, GDP advanced by 0.2% in the second quarter, unchanged from earlier estimates, and was 0.9% higher than the same period in 2024.
Commenting on the data, Matt Swannell (Chief Economic Advisor to the EY ITEM Club), noted that the country continues to show a sluggish trajectory post-COVID.
“GDP growth was confirmed to have slowed to 0.3% in Q2, down from 0.7% at the start of the year. Some of the strength at the start of the year was the result of ongoing issues with residual seasonality, but below the surface, the data paints a weaker picture, with Q2 growth heavily reliant on government spending,” he said.
“Consumption was little more than flat on the quarter, while business investment fell 1.1% as some temporary strength from Q1 unwound.”
Swannell noted that today’s release incorporated additional survey and administrative data, and methodological improvements that caused revisions as far back as 1997.
“The new data leaves the level of GDP a little higher, but it doesn’t change the broader picture that the UK economy has been very sluggish since the pandemic,” he said.
