The ONS reported that UK GDP fell by -0.1% in July, after +0.4% growth in June. Over the three months to July 2025, GDP rose by +0.2% compared with the previous three months. Growth has now slowed for the third consecutive three-month period, down from the +0.8% peak recorded in the three months to April 2025.
In the three months to July 2025, two of the three main sectors expanded. Services grew by +0.4%, making the largest contribution to GDP growth, while construction rose by +0.6%. In contrast, production output declined by -1.3% over the same period, driven by a -1.1% fall in manufacturing (see the UK Manufacturing Output summary in this edition for more detail), alongside decreases in “electricity, gas, steam, and air conditioning supply” (-5.1%) and “mining and quarrying” (-1.8%); in contrast, “water supply, sewerage, waste management, and remediation activities” grew by +1.6%.
Services sector output increased in 10 out of 14 subsectors in the three months to July 2025. The strongest contributions came from “human health and social work” (+1.5%), driven by a +2.5% rise in health activities; “professional, scientific, and technical activities” (+1.2%), led by legal services (+3.1%) and R&D (+3.4%); and “information and communication” (+1.4%), boosted by computer programming, consultancy and related services (+3.2%). This was partly offset by a decline in “wholesale and retail trade; repair of motor vehicles and motorcycles” (-1.3%).
Consumer-facing services fell by -0.6% in the three months to July 2025, led by declines in “retail trade excluding motor vehicles” (-0.9%) and “travel services” (-9.1%). These were partly offset by growth in accommodation (+1.7%) and “food & beverage services” (+0.6%).
Construction output rose by +0.6% in the three months to July 2025, with a +1.0% increase in “new work” largely driven by growth in “infrastructure new work” (+2.1%). “Repair and maintenance” grew only slightly (+0.1%), the largest contribution being “private housing repair and maintenance” (+3.8%). There are more details in the range of ONS Statistical Bulletins which can be downloaded from their website at https://www.ons.gov.uk/releasecalendar (12th September) or on request from MTA.