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flag UK growth slowed to 0.3% in Q2 2025, with cautious spending and weak consumer demand despite higher incomes.

flag The UK economy grew 0.3% in the second quarter of 2025, slowing from 0.7% in the first quarter, with household disposable income rising 0.2% due to higher wages and lower taxes, but consumer spending showed little growth. flag The household saving ratio increased to 10.7%, reflecting cautious spending. flag Production output fell 0.8%, construction grew 1%, and services rose 0.4%. flag Economists warn of sluggish growth ahead due to inflation, slowing wage growth, and expected tax increases in the upcoming autumn Budget, making further interest rate cuts unlikely.

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