UK GDP - Q2 2025 Quarterly National Accounts

GDP

UK GDP grew by 0.3% in Q2 2025, following growth of 0.7% in Q1 2025 (January to March). Compared with the same quarter a year ago, GDP is estimated to have grown by 1.2%.
For the year 2024 as a whole, GDP increased by 1.1%, unrevised from earlier estimates.
Cumulative GDP growth since Q4 2023 is now estimated at 2.9%, revised up from 2.6%.
Real GDP is estimated to have increased by 0.3% in Q2 2025, in line with the previous estimate.

Real GDP is estimated to have increased by an unrevised 0.3% in Quarter 2 2025

Source: ONS

By Sector

Services

The services sector expanded by 0.4% in Q2 2025, with 10 of the 14 sub-sectors contributing positively.
The largest contributor to growth was information and communication, up 2.5%, mainly from computer programming and consultancy (4.5%).
Human health and social work activities grew by 1.2%, also supporting overall growth.
Consumer-facing services fell slightly by 0.1%, while non-consumer services grew by 0.5%.

Production

The production sector contracted by 0.8% in Q2 2025, a deeper fall than the -0.3% initially estimated.
The decline was led by electricity, gas, steam and air conditioning supply, which fell by 7.2%.
Manufacturing output grew by 0.2%, though performance was mixed across sub-sectors.

Construction

Construction output rose by 1.0% in Q2 2025, slightly revised down from a 1.2% first estimate.
New work increased by 0.7%, supported by infrastructure projects.
Repair and maintenance grew by 1.6%, driven by private housing repair and maintenance.

Household Consumption

Household consumption grew by 0.1% QoQ in Q2 2025, representing an annual rise of 1.1%.
Excluding net tourism, domestic household consumption rose by 0.4%.

Government Consumption

Government consumption increased by 1.3% in Q2 2025, supported by higher spending on health, including vaccinations, and greater activity in public administration and defence.

Business Investment

Business investment fell by 1.1% QoQ in Q2 2025, a smaller decline than the -4.0% initially estimated.

Nominal GDP

Nominal GDP rose by 1.0% QoQ in Q2 2025 and is 5.6% YoY higher than the same quarter a year ago.
Compensation of employees grew by 1.9%, with wages and salaries up 1.4% and employers’ social contributions up 4.0%.
Taxes less subsidies fell by 1.2%, reflecting higher subsidies.

Household Income and Savings

Real household disposable income per head increased by 0.2% QoQ in Q2 2025, recovering from a fall of 0.9% in Q1.
The household saving ratio rose to 10.7% in Q2 2025, up slightly from 10.5% in the previous quarter.

International Comparisons

The UK’s GDP growth of 0.3% QoQ in Q2 2025 was low compared with other G7 nations. The US recorded growth of 0.9% QoQ in the same quarter.