The Aporia
The UK economy grew by 0.5% in the second quarter of 2025, surpassing the initial estimate of 0.4%, driven primarily by stronger growth in the services sector. However, this improved outlook was tempered by revisions to previous years' data, revealing that overall economic growth for 2025 is actually 1.2%, down from a previously reported 1.3%. Liz McKeown, ONS director of economic statistics, highlighted the incorporation of new and better data sources for a clearer picture of service sector activity. Despite this positive revision, experts predict challenges ahead due to soaring energy and fuel prices exacerbated by tensions with Iran, potentially leading to no growth in the second half of 2025. Analysts warn that household energy bills could rise by 16% starting January, impacting consumer spending.