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\n 14\/08\/2025 – 15:35 GMT+2\n <\/p>\n
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The UK economy defied US tariff pressures in the second quarter, expanding by 0.3% and outpacing most G7 peers despite a slowdown from the optimistic 0.7% growth seen earlier in the year. Strong performances in the services and construction sector helped drive the gains, offsetting a drop in manufacturing and other production sectors.<\/p>\n
Compared with the same period last year, the economy expanded by 1.2%. While hardly spectacular, the performance has been enough to reassure policymakers and investors that the UK remains on a relatively stable path in a volatile global environment.<\/p>\n
The UK leads the G7 on a half-year basis<\/p>\n
Beneath the headline numbers, the picture was mixed. Services output rose by 0.4%, led by information and communication, health, and social work. Wholesale and retail trade, however, failed to keep pace. <\/p>\n
Construction<\/strong><\/a> delivered the standout performance, climbing 1.2% thanks to strong infrastructure projects and private housing activity. In contrast, the production sector slipped by 0.3%, pulled lower by steep drops in electricity, gas and steam supply, as well as mining and quarrying. That said, manufacturing posted a slight 0.3% gain, buoyed by a 7.0% leap in pharmaceuticals<\/strong><\/a> and 3.0% growth in machinery and equipment.<\/p>\n A notable 0.4% uptick in monthly GDP for June\u2014spanning services, production, and construction\u2014helped counterbalance weak activity in April and May, pointing to a June-led recovery.<\/p>\n Trade dynamics painted a mixed picture. Export volumes rose by 1.6% year-on-year, largely due to stronger services exports, despite a 0.2% drop in goods exports. Import volumes rose 1.4%, driven by a rise in goods imports, while services imports slipped slightly. <\/p>\n