UK GDP Annual Growth Rate at 1.2% in Q2

The British economy grew 1.2% year-on-year in Q2 2025, easing slightly from 1.3% in Q1 but beating forecasts of 1%, according to preliminary estimates. Household spending rose 1.1% (up from 0.9%), government expenditure increased 1.7% (from 1.5%), exports rebounded 3% (vs -0.5%), and import growth slowed to 3.3% (from 7.5%). In contrast, growth in gross fixed capital formation decelerated sharply to 1.3% (from 3.5%), while business investment almost stalled at 0.1% (from 6.1%). On the production side, services expanded 1.2%, just below Q1’s 1.4%, and production output rose 0.3% after stagnating in the prior quarter.