- After June’s 0.4% growth the UK economy showed no growth in July
- Looking over three months to July, GDP grew 0.2% compared with the three months to April 2025
- Whilst both the service and construction sector delivered, growth in manufacturing decreased 1.1% for the same period
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK GDP figures:
“The UK economy has demonstrated incredible resilience over the past six months, delivering growth that has overshadowed other G7 countries.
“But the latest set of data throws into stark relief the fragility of that growth, the very thing this government has hung its hat on and something that will be crucial as the Chancellor battles to balance her books ahead of budget.
“Clearly Donald Trump’s tariffs and the uncertainty about the impact on global trade has impacted some manufacturers, but it’s notable that one of the biggest drops came from the pharmaceutical sector, a sector already in the spotlight after US pharma giant Merck announced it was pulling out of a major UK investment.
“And whilst the sun shone for retailers and parts of the hospitality sector in July, there are huge concerns about consumer confidence which is expected to buckle under the weight of budget speculation at a crucial juncture for both.
“Many businesses which had delayed investment and job creation as they worked through the impact of last year’s budget on labour costs, have kept their fingers on the pause button as they consider what taxes might go up in order to fill the hole in the public finances.
“The biggest question is, how will these figures impact the sums being sweated over by the government’s spending watchdog the OBR, because any downgrading of their long-term growth expectation will cost the Treasury dearly.”
