UK economic growth slowed more than previously thought in spring, ONS figures have revealed, before a steep drop in household living standards.
Data from the Office for National Statistics (ONS) shows the UK's gross domestic product increased by 0.2% in Q2, lower than a previous estimate of 0.3%.
The statistics body, The Times reports, left its third quarter estimate of just 0.1% GDP growth unchanged as speculation surrounding possible tax increases in Rachel Reeve's Autumn Budget stifled economic activity.
However, growth in Q4 of 2024 was revised up the way, from 0.2% to 0.3%.
Martin Beck, chief economist at the consultancy WPI Strategy, told The Times: “The headwinds remain.
"A softening labour market and slowing wage growth risk keeping households on the defensive, especially after the large rise in prices in recent years.
“Another quarter of weak growth at the end of 2025 is unlikely to help sentiment, even if some of the recent softness reflects temporary factors such as budget speculation in October and November and the slow recovery in car production after the Jaguar Land Rover cyber-attack."
Real household disposable income per head, a measure of living standards in Britain, declined sharply by 0.8% in Q3 after a big decline of 0.9% in the first quarter and no change at all in the second quarter.
It means that, according to data available on the economy, household living standards have not improved at all and have actually fallen during the Labour government’s second year in power.