FX.co ★ UK GDP Annual Growth Rate Revised Higher in Q2

In the second quarter of 2025, the British economy experienced a year-on-year growth of 1.4%, adjusted upwards from an initial estimate of 1.2%, and in comparison to a revised 1.7% increase in the first quarter. Household expenditure rose by 1.1%, consistent with the preliminary estimate, and against a revised lower 0.8% growth in the first quarter. Government spending exceeded expectations, increasing by 2.1% compared to the initial 1.7% estimate, mirroring the upwardly revised 2.1% growth seen in the previous quarter. Additionally, exports were adjusted upwards to a 3.7% increase versus the earlier forecast of 3%, following a notable 4.6% rise in the first quarter. Import growth slowed more significantly than anticipated, registering a 2.2% increase as compared to the initially projected 3.3%, subsequent to a revised decrease to 7.4% in the first quarter. Concurrently, growth in gross fixed capital formation decelerated less severely than predicted, with a 2.9% rise as opposed to the anticipated 1.3%, though the first quarter figures were revised down to 2.9% from 3.5%. Business investment ascended by 3%, contrasting with a previously flat estimate and the 5.8% growth recorded in the first quarter.