GDP figures below analyst expectations

Kevin Brown, savings specialist comments on today’s lower than expected UK GDP figures.

"The feeling was not good ahead of today’s GDP figures. Economists were fretting about the impact of ‘Awful April’, which saw rises in utility and council tax bills, plus a hike in employer’s National Insurance contributions. This came against a background of global turmoil, with the US tariff uncertainty continuing to disrupt supply chains.

As it was, the UK economy performed even worse than expected. This reverses the relatively encouraging data seen since the start of the year, with the economy having outpaced forecasts in the first three months of 2025. It will do little to cheer the Chancellor, who is already struggling with higher borrowing costs and rising demands on the public purse.

From here, the path of UK economic growth remains uncertain. Investments in infrastructure, AI and education announced in the Spending Review will take time to be felt in tangible economic progress. In the meantime, UK companies are contending with an uncertain operating environment and higher employment costs.

There are still clear risks for the UK. Careful saving and investing will give households a cushion against volatility.”