UK economic growth slows as Trump tariffs and higher costs hit businesses
UK economic growth slowed between April and June as businesses battled higher costs and Donald Trump’s tariffs came into force.
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Figures from the Office for National Statistics showed GDP — a measure of everything produced in the economy — expanded by just 0.3 per cent in the three months to June.
It marks a slowdown from the first three months of the year, when GDP rose 0.7 per cent as businesses prepared for the US president’s taxes on imports.
In particular, economic activity was weaker in April and May as purchases were brought forward ahead of the stamp duty and tariff changes.
Costs rose for households as energy, water and council tax bills rose, leading to higher inflation overall.
The higher costs also hit employers in the form of higher national insurance contributions and increased minimum wages.
However, the figure was stronger than the 0.1 per cent level widely expected by economists after an uptick in activity in June and revised data for earlier in the quarter.
ONS director of economic statistics Liz McKeown said: "Growth slowed in the second quarter after a strong start to the year.
"The economy was weak across April and May, with some activity having been brought forward to February and March ahead of stamp duty and tariff changes, but then recovered strongly in June.
"Across the second quarter as a whole, growth was led by services, with computer programming, health and vehicle leasing growing."
Reacting to the figures, chancellor Rachel Reeves admitted there is "more to do" to rebuild the economy, but believed British businesses had the "key ingredients for success"
"Today's economic figures are positive with a strong start to the year and continued growth in the second quarter," Ms Reeves said.
"But there is more to do to deliver an economy that works for working people. I know that the British economy has the key ingredients for success but has felt stuck for too long.
"That is why we're investing to rebuild our national infrastructure, cutting back on red tape to get Britain building again and boosting the national minimum wage to make work pay.
"There's more to do and today's figures only fuel my ambition to deliver on our plan for change."
More to follow....