UK GDP grew 0.3% in three months from April to June 2025

The UK economy grew 0.3% in the three months from April to June 2025, according to the latest GDP estimates from the Office of National Statistics (ONS).

While the latest growth figure represents a slight slowdown in the 0.7% growth recorded in the previous quarter, the UK economy has outperformed estimates for the quarter following upward revisions of monthly economic data, with output up 1.2% on the same quarter last year.

Some of the slowdown in growth has also been attributed to a flurry of activity ahead of the imposition of tariffs in the US and domestic tax changes that both took affect from the beginning of April, and which inflated economic activity in the previous quarter.

A strong quarter for the construction sector, up 1.2% over the three month period, has helped drive growth, likely aided by dry weather that has helped accelerate progress on sites. The services sector also saw modest growth of 0.7%, with the warm weather also helping the hospitality sector to return to growth, albeit at just 0.08%. Manufacturing, however, has seen a small contraction in its output, down 0.3% across the quarter, although some subsectors including pharmaceuticals and machinery manufacturing, did buck that trend.

While very modest, the UK economy remains among the fastest growing in the G7, highlighting the difficult economic conditions worldwide. The USA saw growth just marginally above the UK rate at 0.7%, with France also recording 0.3% growth for this quarter. Other major European economies, Germany and Italy have both seen a 0.1% contraction in their economies this quarter, with Canada’s economy unchanged in size.