UK GDP Growth Beats Expectations with Strong 0.4% Expansion in June 2025
The UK GDP growth rate surprised markets in June 2025, rising 0.4% month-over-month after a 0.1% contraction in April and May. This figure easily surpassed the forecast of just 0.1%, signaling renewed economic momentum.
All three major sectors, services, production, and construction, contributed to the expansion, with services delivering the largest boost.
🔍 Key Takeaways
- UK GDP growth rose 0.4% MoM in June, beating the 0.1% forecast.
- Annual growth accelerated to 1.4%, the fastest since February.
- Services sector grew 0.3%, led by professional, scientific, and technical activities (+1.7%).
- Production rose 0.7%, with manufacturing up 0.5%.
- Construction output increased 0.7%, continuing its steady recovery.
📊 UK GDP Data — June 2025
| Sector | Monthly Change (%) | Notes |
|---|---|---|
| Services | +0.3 | Led by professional, scientific, technical activities |
| Professional, Scientific & Technical | +1.7 | Strongest performer |
| Wholesale & Retail Trade | +0.8 | Solid consumer activity |
| Production | +0.7 | Driven by manufacturing |
| Manufacturing | +0.5 | Broad-based gains |
| Electricity, Gas, Steam & Air Conditioning | +3.3 | Energy supply rebound |
| Water Supply, Sewerage & Waste Management | +0.5 | Moderate increase |
| Mining & Quarrying | -0.4 | Decline partially offset gains elsewhere |
| Construction | +0.7 | Ongoing recovery |
📈 Sector Performance Overview
The services sector, which makes up the largest share of the UK economy, grew 0.3% in June. Within this, professional, scientific, and technical activities saw a sharp 1.7% rise, followed by wholesale and retail trade at 0.8%, reflecting strong consumer demand.
The production sector rose 0.7%, with manufacturing up 0.5%. Energy-related industries surged, with electricity, gas, steam, and air conditioning supply jumping 3.3%. However, mining and quarrying dipped 0.4%, slightly offsetting the gains.
Construction output climbed 0.7%, marking continued resilience despite broader economic challenges earlier in the year.
Read More: UK Unemployment Rate Holds at 4.7% in June 2025, Highest Since 2021
📅 Annual Growth Accelerates
On a year-over-year basis, UK GDP growth hit 1.4%, up from 0.9% in May, making it the fastest pace since February 2025. Economists see this as a sign that the UK economy is regaining momentum after a slow start to the year.
💬 What’s Next?
With stronger-than-expected GDP figures, attention will turn to the Bank of England’s policy stance in the coming months. If growth remains steady, policymakers may adopt a more cautious approach to future interest rate changes.
✅ Join the Discussion:
Do you think this growth marks a lasting recovery for the UK economy? Share your thoughts below or check out our related market updates.
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