Britain's GDP growth slows to 0.3 pct in Q2: ONS

LONDON - Britain's gross domestic product (GDP) grew by 0.3 percent in the second quarter of 2025, slowing from the 0.7 percent increase recorded in the first quarter, according to data released by the Office for National Statistics (ONS) Thursday.

Of the three main sectors of the economy, construction output expanded by 1.2 percent, making it the main contributor to economic growth during the period. Within the construction industry, infrastructure new work and private housing repair and maintenance posted robust gains, according to the office.

Services output rose 0.4 percent, with computer programming and health services among the main drivers of growth. In contrast, wholesale and retail trade suffered a sharp decline. Production output contracted by 0.3 percent over the April-June period.

Stuart Morrison, research manager at the British Chambers of Commerce, said, "We saw better than expected growth at the start of the year, largely because of stockpiling ahead of US tariffs. However, tax burdens at home, alongside uncertain global trading conditions, created a very challenging environment for the UK's small and medium-sized enterprises in Q2."

In a recent report, EY ITEM Club predicted that persistent uncertainty in the global economy, alongside tightening fiscal policy and a weakening labor market, will continue to weigh on British economic momentum. It forecast that the country's GDP growth will remain subdued until 2027.