MNI BRIEF: UK Growth Unrevised In Q2; Household Savings Rise

UK GDP grew by an unrevised 0.3% in Q2 2025 following an unrevised increase of 0.7% in Q1, data released by the Office for National Statistics showed.

In output terms, growth in the latest quarter was driven by increases of 0.4% in services and 1.0% in construction, while the production sector fell by 0.8%, the data showed.

Real household disposable income per head increased in the quarter by 0.2%, following a fall of 0.9% in Q1, while the household saving ratio increased by 0.2 percentage points to 10.7%, driven by a rise in the contribution of non-pension saving. “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," ONS Director of Economic Statistics Liz McKeown said.

Although growth in the first half of the year was stronger than initially expected, the slower Q2 underlines the growth challenges facing the government, which will weigh on the fiscal room open to Chancellor Rachel Reeves in the November budget, even as she aims to boost growth further.