The UK's gross domestic product (GDP) rate is estimated to have grown by an unrevised 0.3 per cent in the second quarter of 2025, April to June, according to the latest figures from the Office for National Statistics (ONS).
This comes after an unrevised increase of 0.7 per cent between January and March, meaning the UK' economy has grown by one per cent in the first half of the year so far.
Chancellor Rachel Reeves has made bolstering economic growth as central to her agenda, however has faced hurdles since the Labour Government came into power last July.
Based on output terms, Britain's economic growth over the period was primarily driven by a 0.4 per cent in services and a one per cent burst in construction.
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|PA / ONS
However, this GDP growth was partially offset by a 0.8 per cent decline in production. In expenditure terms, growth was driven by Government consumption and gross fixed capital.
Furthermore, the ONS' latest report revealed that the UK's economic growth for 2024 is projected to have stood at 1.1 per cent.
According to the statistics body, the second-largest positive contribution to growth was human health and social work activities, which jumped by 1.2 per cent.
Both market and non-market human health and social work activities grew in the latest quarter.
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|ONS
The largest negative contributor to growth in the second quarter of this year was was wholesale and retail trade; repair of motor vehicles and motorcycles, which slipped by one per cent.
This was mainly because of a decline in wholesale trade, excluding motor vehicles and motorcycles, which fell by 2.4 per cent.
Liz McKeown, ONS director of economic statistics, said: "Growth for 2024 as a whole is unrevised, though these new figures show the economy grew a little less strongly at the start of last year than our initial estimates suggested but performed better in later quarters.
"Quarterly growth rates for 2025 are unrevised. In the latest quarter we saw an increase in the household saving ratio, very little growth in consumer spending and a slight fall in output for consumer facing services, despite growth in services overall."
Despite concerns over the trajectory of the economy, analysts from accountancy giant PwC previously claimed growth remains "subdued but not stalling".
Economists project that UK GDP is on track to grow by 1.3 per cent in 2025, thanks to a higher-than-expected growth in the first quarter of the year.
During her speech at yesterday's Labour Party Conference, Ms Reeves highlighted that the country is facing "harsh global headwinds" but insisted she would keep control of the public finances.
She asserted that international events, including tariffs and geopolitical conficts, have caused "long-term damage" to the UK economy.
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|ONS
Enrique Diaz-Alvarez, the chief economist at Ebury, said: "The PMIs of business activity suggested a loss of momentum in the UK economy.
"Both the services and manufacturing indices fell well short of expectations, and while we are seeing modest growth in the former, the contraction in the latter is accelerating.
"Gilt yields continue to hover near multi-decade highs, as markets remain wary of the willingness and ability of the Labour government to close the fiscal gap."