UK economy grew by 0.4% in June on stronger services and construction output
Date: 2025-08-14T06:47:50.000Z
Title: UK GDP grew by 0.3% in second quarter thanks to surprise June acceleration
Content: Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.
The UK economy grew by 0.4% month-on-month in June according to new data that helped the second quarter to end with better-than-expected output, according to data published on Thursday.
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.
Nevertheless, it was still a slowdown compared to the first quarter, when the UK economy grew by 0.7%. Economists expected slower growth because of Donald Trump's trade war, which caused chaos in the second quarter after his 'liberation day' announcement on 2 April.
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.
We'll have all the reaction to the GDP figures this morning.
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%)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
12 minutes ago
- The Independent
Liverpool's summer sales exceed £200m as Ben Doak signs for Bournemouth
Ben Doak has joined Bournemouth for £25m to take Liverpool's summer sales past the £200m mark. Liverpool have a buyback clause for the Scotland international winger, as they did in Jarell Quansah 's move to Bayer Leverkusen, in case they want to bring him back to Anfield. Bournemouth saw off a host of other clubs to sign the teenager, with Porto submitting a bid and Nottingham Forest, Leeds, Wolves and West Ham all interested in Doak. He will arrive in Dorset as a replacement for Dango Ouattara, who was sold to Brentford for £42m. Doak only made three Premier League appearances for Liverpool, all as a substitute, and played 10 times in all competitions but has impressed in his six caps for Scotland and on loan at Middlesbrough last season. He follows Luis Diaz, Darwin Nunez, Trent Alexander-Arnold, Caoimhin Kelleher, Tyler Morton, Nat Phillips and Quansah in leaving Anfield this summer. Liverpool are guaranteed £206m from their sales, which could go up to £227m including add-ons. The Premier League champions have spent over £300m and head coach Arne Slot has said he wants to sign one more attacker. Liverpool had a £110m bid for Alexander Isak rejected by Newcastle last month.
Reuters
12 minutes ago
- Reuters
US court reopens Citgo parent auction for bids, winner to be recommended this month
HOUSTON, Aug 18 (Reuters) - A U.S. judge on Monday authorized a court officer overseeing an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to receive and negotiate improved bids this week before confirming or changing the winner recommendation he made last month. A final winner recommendation in the complex court-organized auction is expected to be submitted by the end of this month, Judge Leonard Stark said in a hearing.
BBC News
12 minutes ago
- BBC News
'Sad to see' - Newcastle and Villa fans unite against PSR
Their sides may have been battling it out on the pitch, but Newcastle United and Aston Villa fans stood together as both sets of supporters vented their anger towards Profit and Sustainability Rules (PSR) at Villa Park on the opening weekend of the Premier League timing of this chant felt significant before Aston Villa announced the departure of Jacob Ramsey to Newcastle 24 hours or so deal secured Aston Villa pure profit on account of Ramsey being an academy it was not a cause for Villa captain John McGinn, who has been a vocal critic of financial regulations, wrote that it "seems to be the way football is set up these days".Such dismay has even been felt across the Atlantic by Dean Smith, the club's former manager, who handed Ramsey his debut."It is sad for the Villa fans to see one of our own go," he said of the £40m deal. 'Very difficult to see him leave' Geordies know that feeling, of was just last summer that Elliot Anderson was sold to Nottingham Forest to help Newcastle comply with PSR rules following years of imbalanced head coach Eddie Howe said he was "uncomfortable" letting Anderson go, but clubs are now being incentivised to sell such leaves homegrown talent increasingly vulnerable, as football finance expert Kieran Maguire explained."It works from an accounting point of view," he said. "But it's absolutely awful from a footballing perspective. I can understand the frustration of fans. They have a special bond."Neutrals may question why Newcastle and Aston Villa have had to resort to such all, don't these ambitious clubs have incredibly wealthy owners?But it is the established order rather than these disruptors who have been able to fall back on superior income is what matters in a PSR world, as clubs are limited to losses of up to £105m over a rolling three-year context, as previously reported by BBC Sport, Arsenal (£327.8m), Chelsea (£337.8m), Manchester United (£364.7m), Liverpool (£386.1m) and Manchester City (£412.6m) spent more on wages than Newcastle generated in revenue (£320.3m) in Premier League clubs' most recently published Villa, meanwhile, have had a higher wage-to-turnover ratio than Newcastle and the club were recently sanctioned by Uefa for breaching the European governing body's separate financial Emery's side are now bound by a strict three-year settlement with Uefa, which means that "any £100m in incoming transfers must be matched by at least £100m in outgoing sales", in the words of Ramsey deal will likely have been concluded with that agreement in mind and former team-mate Neil Taylor said it was "very difficult to see him leave" as a result."Jacob wasn't a flash in the pan or just a talent - he was someone that wouldn't let you down," he said. "He had a really good temperament, showed respect to everyone, trained properly and was Villa through and through." An Eddie Howe player Aston Villa's loss is Newcastle's three quiet windows, Newcastle have been able to reinforce their squad after substantial deficits dropped out of the club's three-year PSR cycle, which takes the financial years ending 2024, 2025 and 2026 into have seen several targets move elsewhere, and the Alexander Isak saga continues to hang over the club, but the black-and-whites have brought in Anthony Elanga, Malick Thiaw, Aaron Ramsdale and, now, Ramsey, who is a player Howe "loved" from certainly looks like a Howe player and the versatile midfielder was even ranked second for possessions won (15) in the final third for Aston Villa in the top-flight last may be well-stocked in the middle of the park, but the 24-year-old's athleticism, ball-carrying ability and experience in the Premier League and Champions League will be invaluable as the club prepare to fight on four are clear areas for improvement, registered just six goal involvements in the top-flight last season, but Callum Rowe recalled how his friend "always had an eye for scoring" after the pair came through the ranks together at Aston Villa."He has the natural ability for arriving in the box from midfield and scoring goals, which, in my opinion, is something you can't teach," he said.A chance to work on these aspects of his game under Howe was certainly a big draw for Gordon, Dan Burn, Lewis Hall and Tino Livramento have all become senior England internationals following an extended period with the Newcastle head coach and his Ramsey, who previously won the European Championships with England Under-21s, hopes to one day follow does not feel unrealistic if Ramsey can continue to keep himself fit following an injury-disrupted for one, has no doubt that there is "more to come" from the midfielder, who is "very coachable"."Eddie is really good with the players so Jacob will settle in with him really well," the former Aston Villa manager said. "He could thrive under him and I can see why Eddie has gone for him. He's his type of player. He fits in with the work ethic. He's got the skillset."With my Villa head on, I'd rather see him at Villa still, but he's going to a Champions League team and a big, well-supported club so I wish him well. He will handle it."
