The UK economy expanded by 0.3% between April and June, according to final figures from the Office for National Statistics (ONS). The growth rate matched earlier estimates but represented a sharp deceleration from the robust start to the year.
This marked a steep pullback from the 0.7% expansion recorded in the first quarter of 2025. The ONS confirmed that quarterly growth rates for this year remained unchanged from previous estimates.
While 2025 figures were unrevised, the statistics office updated quarterly gross domestic product data throughout 2024. Despite these revisions, the overall annual growth rate for last year held steady at 1.1%.
Household income recovery
Household disposable income per person rebounded during the second quarter, rising by 0.2% after a 0.9% decline in the opening three months of the year. This represented the first quarterly increase in household finances since the start of 2025.
The improvement was driven by a £4.4 billion increase in wages, primarily within the private sector. Simultaneously, income taxes fell by £4 billion, though this reduction related to the 2023-24 tax year rather than current earnings.
Official assessment
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."
She noted that the latest quarter saw an increase in the household saving ratio and minimal growth in consumer spending. Consumer-facing services experienced a slight decline in output despite overall growth in the services sector, according to McKeown.
Sources used: "Office for National Statistics (ONS)" Note: This article has been edited with the help of Artificial Intelligence.
