Sluggish 0.3% UK growth during Q2

THE UK economy experienced sluggish growth of 0.3% in the second quarter of the year, according to official data, marking another significant blow for Chancellor Rachel Reeves’ aspirations for higher growth.

- MAURICIO ALENCAR

The Office for National Statistics (ONS) maintained its previous growth estimate as it confirmed the figures for the second quarter's growth, a development that is likely to be met with caution by Treasury officials.

This figure is significantly lower than the 0.7% growth observed in the first three months of the year, with businesses reporting that they had accelerated spending earlier in the year to preempt any potential global tariffs war instigated by US President Donald Trump.

A 1% surge in construction and a 0.4% increase in the services sector prevented the UK economy from declining, despite a 0.8% drop in production which negatively impacted the results.