Brief
UK Q2 GDP revised up to 0.5% as services sector drives growth
ONS data show a 0.5% quarterly rise, but a lower-than‑expected 1.2% annual growth for 2025.
By Felo News Desk · Published
Britain’s Office for National Statistics said gross domestic product grew by 0.5% in the second quarter of 2025, revising up from an earlier 0.4% estimate, as a surge in services activity offset the impact of the Iran war, according to a Standard report published on 30 September 2026.
What happened
The ONS data indicate a 0.6% rise in services output in Q2, with June benefiting from hot weather and the start of the World Cup football tournament. The quarterly figure follows a 0.6% increase in the first three months of the year. Revised annual growth for 2025 fell to 1.2%, down from the previously recorded 1.3%.
What the reports add
Standard noted that analysts at Cornwall Insight warned that soaring energy and fuel prices linked to the Iran conflict could curb spending later in the year. WPI Strategy chief economist Martin Beck projected overall 2025 growth of about 1.2% and warned of “virtually no expansion over the second half of this year”.
What was said
Liz McKeown, ONS director of economic statistics, said: “Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised. However, stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated.”
How it came about
Earlier this month Felo reported on the OECD’s upgraded 2024 UK growth outlook and the expected slowdown in 2025, highlighting energy‑cost pressures that now appear to be influencing the latest ONS revisions.
Key facts
- UK Q2 2025 GDP grew 0.5% after revision (standard.co.uk)
- Services sector growth was revised to 0.6% in Q2 (standard.co.uk)
- Annual 2025 growth revised down to 1.2% from 1.3% (standard.co.uk)
- Analysts warn rising energy prices could dampen later‑year growth (standard.co.uk)
Sources
- [1] standard.co.uk — originally reported as “UK economy grows faster than first thought amid service sector boost”
