The UK economy grew by 0.4% month on month in June, according to data that helped the second quarter to end with better-than-expected output.
British output rose by 0.3% in the second quarter of 2025, the Office for National Statistics said. That was higher than the 0.1% expected by economists polled by Reuters.
The faster-than-expected growth was down to better performance from the services and construction sectors, which grew at 0.4% and 1.2% respectively in the quarter – although production output (which includes manufacturing) fell.
Real GDP per head is estimated to have grown by 0.2% in the latest quarter and is up 0.7% compared with the same quarter a year ago.
It is also unclear whether the help from the construction sector can be sustained, given more recent purchasing managers’ index data for July showing a steep drop in UK housebuilding.
Rachel Reeves, the chancellor, has welcomed the stronger-than-expected GDP growth figures.
However, it is not a resounding celebration, perhaps given all of the uncertainty in the global economy.
She said: "Today’s economic figures are positive with a strong start to the year and continued growth in the second quarter. But there is more to do to deliver an economy that works for working people.
"I know that the British economy has the key ingredients for success but has felt stuck for too long.
"That is why we’re investing to rebuild our national infrastructure, cutting back on red tape to get Britain building again and boosting the national minimum wage to make work pay. There’s more to do and today’s figures only fuel my ambition to deliver on our plan for change."
The agenda
• 10am BST: eurozone GDP growth rate second estimate (second quarter; previous 0.6% quarter on quarter; consensus 0.1%) • 10am BST: eurozone industrial production (June; previous 1.7% month on month; consensus -1%) • 1pm BST: US producer price inflation (July; previous 0%; consensus 0.2%)
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