The UK economy grew by 0.3% between April and June, slowing from 0.7% in the first quarter of the year, according to the Office for National Statistics (ONS). Despite the slowdown, the
figure beat forecasts of just 0.1% growth.
Growth was driven mainly by the services sector, with construction also posting gains.
Chancellor Rachel Reeves called the results “positive” for an economy that “has felt stuck for too long,” but stressed more work was needed to create an economy that “works for working people.”
Opposition parties were more critical. Conservative shadow chancellor Mel Stride accused the government of “economic vandalism,” while Liberal Democrat MP Daisy Cooper mocked the pace of growth, saying: “Snails would scoff at it.”
The ONS also revised its April figures, saying GDP fell by only 0.1% rather than the previously reported 0.3%. June’s performance was stronger than expected.
Economists remain cautious. Ruth Gregory of Capital Economics warned that global weakness, tax rises, and uncertainty over the Autumn Budget could slow growth in the months ahead. ING Bank’s James Smith noted that early-year growth was boosted by businesses preparing for potential US tariffs and a rush in home sales before stamp duty changes — factors that no longer apply.
Construction grew by 1.2% during the quarter, helped by unusually hot, dry weather. Liverpool hospitality owner Iain Hoskins said better weather, falling interest rates, and improved consumer confidence had lifted business sentiment.
The Bank of England has cut interest rates five times in the past year, bringing the base rate down to 4%. Photo by The wub, Wikimedia commons.
