UK GDP Expands More Than Expected

The British economy expanded 0.4% month-over-month in June 2025, rebounding from a 0.1% contraction in the previous two months and surpassing expectations of a 0.1% rise. All three main sectors contributed to the growth, with services output providing the largest boost, increasing 0.3%. Within the sector, the professional, scientific, and technical activities subsector led the gains, rising 1.7%, followed by wholesale and retail trade, which grew 0.8%. Production also rose 0.7%, mainly driven by manufacturing, which increased 0.5%. Electricity, gas, steam, and air conditioning supply and water supply, sewerage, waste management, and remediation activities grew 3.3% and 0.5%, respectively, while mining and quarrying fell 0.4%, partially offsetting overall gains. Construction output rose 0.7%, continuing its steady recovery. On a yearly basis, GDP expanded 1.4%, the fastest pace since February, up from 0.9% growth in May.